10-Q/A

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[Ö]	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended March 31, 2012
	OR
[  ]	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from__________ to__________

Commission File Number: 2-94863

CANANDAIGUA NATIONAL CORPORATION
(Exact name of registrant as specified in its charter)

New York (State or other jurisdiction of incorporation or organization)	16-1234823 (IRS Employer Identification Number)
72 South Main Street Canandaigua, New York (Address of principal executive offices)	14424 (Zip code)

(585) 394-4260
(Registrant's telephone number, including area code)

    Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.

Yes  [Ö] No  [ ]

    Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months.

Yes  [Ö] No  [ ]

    Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or a smaller reporting company.

Large accelerated filer [ ]           Accelerated filer [Ö]            Non-accelerated filer [ ]         Smaller reporting company [ ]

    Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [ ]    No [Ö]

    The registrant had 1,887,154 shares of common stock, par value $5.00, outstanding at April 30,2012.

Forward-Looking Statements

This report, including information incorporated by reference, contains, and future filings by Canandaigua National Corporation on Forms 10-K, 10-Q and 8-K and future oral and written statements, press releases, and letters to shareholders by Canandaigua National Corporation and its management may contain, certain "forward-looking statements" intended to qualify for the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. When used or incorporated by reference in the Company's disclosures and documents, the words "anticipate," "believe," "contemplate," "estimate," "expect," "foresee," "project," "target," "goal," "budget" and similar expressions are intended to identify forward-looking statements within the meaning of Section 27A of the Securities Act. Such forward-looking statements are subject to certain risks discussed within this document and the Company’s most recent Annual Report on Form 10-K. These forward-looking statements are based on currently available financial, economic, and competitive data and management's views and assumptions regarding future events. These forward-looking statements are inherently uncertain, so should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, expected, projected, targeted, or budgeted. Certain matters which management has identified, which may cause material variations are noted elsewhere herein and in the Company’s other publicly filed reports. These forward-looking statements speak only as of the date of the document. We expressly disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein.  We caution readers not to place undue reliance on any of these forward-looking statements.

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
INDEX TO FORM 10-Q
March 31, 2012

PART I -- FINANCIAL INFORMATION	PAGE
Item 1.  Financial Statements (Unaudited)
Condensed consolidated balance sheets at March 31, 2012 and December 31, 2011	1
Condensed consolidated statements of income for the three-month periods ended
March 31, 2012 and 2011.	2
Condensed consolidated statements of comprehensive income for the three-month periods ended
March 31, 2012 and 2011.	3
Condensed consolidated statements of stockholders' equity for the three-month periods ended
March 31, 2012 and 2011.	4
Condensed consolidated statements of cash flows for the three-month periods ended
March 31, 2012 and 2011.	5
Notes to condensed consolidated financial statements	6
Item 2.  Management's Discussion and Analysis of Financial
Condition and Results of Operations	26
Item 3. Quantitative and Qualitative Disclosures about Market Risk	32
Item 4. Controls and Procedures	32
PART II -- OTHER INFORMATION
Item 1.  Legal Proceedings	33
Item 1A.  Risk Factors	33
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3.  Defaults Upon Senior Securities	33
Item 4.  (Removed and Reserved)	33
Item 5.  Other Information	33
Item 6.  Exhibits	35
SIGNATURES	36

PART I  FINANCIAL INFORMATIONItem 1. Financial Statements

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2012 and December 31, 2011 (Unaudited)
(dollars in thousands, except per share data)

					March 31,	December 31,
					2012	2011
	Assets
Cash and due from banks				$	35,266	52,715
Interest-bearing deposits with other financial institutions					5,882	6,490
Federal funds sold					64,425	67,535
Securities:
		- Available for sale, at fair value			107,330	114,258
		- Held-to-maturity (fair value of $170,109 in 2012 and $172,517 in 2011)			165,464	167,225
Loans - net					1,344,268	1,276,426
Premises and equipment – net					16,015	16,101
Accrued interest receivable					7,404	6,627
Federal Home Loan Bank stock and Federal Reserve Bank stock					2,656	2,656
Goodwill					15,810	15,810
Intangible assets					6,584	6,787
Prepaid FDIC assessment					3,647	3,905
Other assets					24,631	24,935
			Total Assets	$	1,799,382	1,761,470
	Liabilities and Stockholders' Equity
Deposits:
	Demand
		Non-interest bearing		$	232,257	227,284
		Interest bearing			183,592	175,409
	Savings and money market				772,572	745,713
	Time				395,104	398,204
			Total deposits		1,583,525	1,546,610
Junior subordinated debentures					51,547	51,547
Accrued interest payable and other liabilities					27,375	27,533
			Total Liabilities		1,662,447	1,625,690
Canandaigua National Corporation stockholders' equity:
	Preferred stock, $.01 par value; 4,000,000 shares
		authorized, no shares issued or outstanding			-	-
	Common stock, $5.00 par value; 16,000,000 shares
		authorized, 1,946,496 shares issued in 2012 and 2011			9,732	9,732
	Additional paid-in-capital				8,834	8,834
	Retained earnings				121,373	120,675
	Treasury stock, at cost (59,242 shares at March 31, 2012
		and December 31, 2011)			(4,912)	(4,912)
	Accumulated other comprehensive income, net				(1,040)	(1,455)
	Total Canandaigua National Corporation Stockholders' Equity				133,987	132,874
	Non-controlling interests				2,948	2,906
		Total Equity			136,935	135,780
		Total Liabilities and Equity		$	1,799,382	1,761,470

See accompanying notes to condensed consolidated financial statements.

1

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the three-month periods ended March 31, 2012 and 2011 (Unaudited)
(dollars in thousands, except per share data)

				Three Months Ended
				March 31,
				2012	2011
Interest income:
	Loans, including fees		$	16,450	16,079
	Securities			1,903	2,070
	Federal funds sold			35	90
	Other			4	5
		Total interest income		18,392	18,244
Interest expense:
	Deposits			1,503	2,676
	Junior subordinated debentures			696	745
		Total interest expense		2,199	3,421
		Net interest income		16,193	14,823
Provision for loan losses				1,150	750
		Net interest income after provision for loan losses		15,043	14,073
Other income:
	Service charges on deposit accounts			2,823	2,585
	Trust and investment services income			3,810	3,099
	Net gain on sale of mortgage loans			599	370
	Loan servicing income, net			204	219
	Loan-related fees			72	109
	(Loss) on securities transactions, net			(6)	(1)
	Other operating income			680	811
		Total other income		8,182	7,192
Operating expenses:
	Salaries and employee benefits			10,755	8,001
	Occupancy, net			2,046	1,833
	Technology and data processing			1,210	1,042
	Professional and other services			926	907
	Marketing and public relations			609	669
	Office supplies, printing and postage			421	414
	Intangible amortization			203	222
	Other real estate operations			318	228
	FDIC insurance			283	679
	Other operating expenses			1,373	1,326
		Total operating expenses		18,144	15,321
		Income before income taxes		5,081	5,944
Income taxes				1,510	1,605
		Net income attributable to noncontrolling interests and
		Canandaigua National Corporation		3,571	4,339
Less: Net income attributable to noncontrolling interests				42	-
Net income attributable to Canandaigua National Corporation			$	3,529	4,339
Basic earnings per share			$	1.87	2.30
Diluted earnings per share			$	1.83	2.26

See accompanying notes to condensed consolidated financial statements.

2

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

[WITH RESPECTIVE TAX INFORMATION PRESENTED PARENTHETICALLY]
For the three-month periods ended March 31, 2012 and 2011 (Unaudited)
(dollars in thousands)

						2012	2011
Net income					$	3,571	4,339
	Other comprehensive income:
		Change in fair value of
			interest rate swaps,
			net of taxes of $ 430 and $417			672	703
		Change in unrealized gain on
			on securities available for sale,
			net of taxes of ($138) and ($79)			(219)	(163)
		Plus reclassification adjustment
			for realized gains and losses included in
			net income on called securities,
			net of taxes of ($12) and $6			(38)	13
				Other comprehensive income	$	415	553
Total comprehensive income						3,986	4,892
	Comprehensive income attributable
		to the noncontrolling interest			$	42	-
	Comprehensive income attributable to the Company				$	3,944	4,892

See accompanying notes to condensed consolidated financial statements.

3

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
For the three-month periods ended March 31, 2012 and 2011 (Unaudited)
(dollars in thousands, except share data)

													Accumulated
				Number of			Additional						Other		Non-
				Shares	Common		Paid-in		Retained		Treasury		Comprehensive		controlling
				Outstanding	Stock		Capital		Earnings		Stock		Income (Loss)		Interest		Total
Balance at December 31, 2011				1,887,254	$	9,732		8,834		120,675		(4,912)		(1,455)		2,906	135,780
	Comprehensive income:
		Change in fair value of
			interest rate swaps,
			net of taxes of $430			-		-		-		-		672		-	672
		Change in unrealized gain on
			on securities available for sale,
			net of taxes of ($138)			-		-		-		-		(219)		-	(219)
		Plus reclassification adjustment
			for realized gains included in
			net income on called securities,
			net of taxes of ($12)			-		-		-		-		(38)		-	(38)
		Net income attributable to non-
			controlling interest and
			Canandaigua National Corporation			-		-		3,529		-		-		42	3,571
	Total comprehensive income					-		-		3,529		-		415		42	3,986
	Cash dividend - $ 1.50 per share					-		-		(2,831)		-		-		-	(2,831)
Balance at March 31, 2012				1,887,254	$	9,732		8,834		121,373		(4,912)		(1,040)		2,948	136,935
Balance at December 31, 2010				1,888,748	$	9,732		8,823		109,768		(4,728)		199		-	123,794
	Comprehensive income:
		Change in fair value of
			interest rate swaps,
			net of taxes of $417			-		-		-		-		703		-	703
		Change in unrealized gain on
			on securities available for sale,
			net of taxes of $(79)			-		-		-		-		(163)		-	(163)
		Plus reclassification adjustment
			for realized losses included in
			net income on called securities,
			net of taxes of $6			-		-		-		-		13		-	13
		Net income attributable to non-
			controlling interest and
			Canandaigua National Corporation			-		-		4,339		-		-		-	4,339
	Total comprehensive income					-		-		4,339		-		553		-	4,892
	Purchase of treasury stock			(200)		-		-		-		(19)		-		-	(19)
	Cash dividend - $ 1.43 per share					-		-		(2,691)		-		-		-	(2,691)
Balance at March 31, 2011				1,888,548	$	9,732		8,823		111,416		(4,747)		752		-	125,976

See accompanying notes to condensed consolidated financial statements.

4

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the three-month periods ended March 31, 2012 and 2011 (Unaudited)
(dollars in thousands)

						2012	2011
Cash flow from operating activities:
	Net income attributable to Canandaigua National Corporation				$	3,529	4,339
	Adjustments to reconcile net income to
		Net cash provided by operating activities:
			Depreciation, amortization and accretion			1,597	1,359
			Provision for loan losses			1,150	750
			Gain on sale of premises and equipment and other real estate, net			(122)	(17)
			Writedown of other real estate			85	-
			Deferred income tax benefit			(859)	(384)
			Loss (Income) from equity-method investments, net			16	(323)
			Loss on calls of securities and write-down, net			6	1
			Gain on sale of mortgage loans, net			(599)	(370)
			Originations of loans held for sale			(51,160)	(35,031)
			Proceeds from sale of loans held for sale			47,679	45,267
			Increase in other assets			(723)	(864)
			Increase (decrease) in all other liabilities			944	(482)
				Net cash provided by operating activities		1,543	14,245
Cash flow from investing activities:
	Securities available-for-sale:
		Proceeds from maturities and calls				18,465	6,865
		Purchases				(11,929)	(7,869)
	Securities held to maturity:
		Proceeds from maturities and calls				6,208	4,523
		Purchases				(4,828)	(9,154)
	Loan originations in excess of principal collections, net					(65,470)	23,285
	Purchase of premises and equipment, net					(578)	(636)
	Calls of FHLB stock, net of purchases of FHLB and FRB stock					-	(102)
	Investment in equity-method investments					(209)	(3)
	Proceeds from sale of other real estate					1,505	455
				Net cash (used) provided by investing activities		(56,836)	17,364
Cash flow from financing activities:
	Net increase in demand, savings and money market deposits					40,015	62,774
	Net decrease in time deposits					(3,100)	(13,204)
	Principal repayments of term borrowings					-	(330)
	Payments to acquire treasury stock					-	(19)
	Change in noncontrolling interest, net					42	-
	Dividends paid					(2,831)	(2,691)
				Net cash provided by financing activities		34,126	46,530
				Net (decrease) increase in cash and cash equivalents		(21,167)	78,139
	Cash and cash equivalents - beginning of period					126,740	138,229
	Cash and cash equivalents - end of period				$	105,573	216,368
Supplemental disclosure of cash flow information:
	Interest paid				$	2,213	3,567
	Income taxes paid					151	208
Supplemental schedule of noncash investing activities
	Real estate acquired in settlement of loans				$	558	-

See accompanying notes to condensed consolidated financial statements.

5

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

(1)   Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and applicable regulations of the Securities and Exchange Commission (SEC) and with generally accepted accounting principles for interim financial information. Such principles are applied on a basis consistent with those reflected in the 2011 Annual Report (defined below) of the Company filed with the SEC. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.  Management has prepared the financial information included herein without audit by an independent registered public accounting firm.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the three month periods ended March 31, 2012, are not necessarily indicative of the results that may be expected for the year ending December 31, 2012.  For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2011 (the “2011 Annual Report”).

Amounts in prior periods' condensed consolidated financial statements are reclassified whenever necessary to conform to the current year's presentation.

Management has evaluated the impact of subsequent events on these financial statements to the date of filing of this Form 10-Q with the Securities and Exchange Commission.

(2) Securities

Amortized cost and fair value of available-for-sale and held-to-maturity securities at March 31, 2012 are summarized as follows:

				March 31, 2012
					Gross Unrealized
				Amortized			Fair
				Cost	Gains	Losses	Value
Securities Available for Sale:
	U.S. Treasury		$	502	-	-	502
	U.S. government sponsored enterprise obligations			51,149	267	(113)	51,303
	State and municipal obligations			51,605	1,627	(16)	53,216
	Corporate obligations (1)			1,094	2	(269)	827
	Equity securities			1,292	190	-	1,482
		Total Securities Available for Sale	$	105,642	2,086	(398)	107,330
		(1)Amortized cost includes cumulative $360,000 write-down prior to 2010 for other-than-temporary impairment.

Securities Held to Maturity:
	U.S. government sponsored enterprise obligations		$	7	2	-	9
	State and municipal obligations			164,629	4,520	(182)	168,967
	Corporate obligations			828	305	-	1,133
		Total Securities Held to Maturity	$	165,464	4,827	(182)	170,109

6

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

(2) Securities (continued)

The amortized cost and fair value of debt securities by years to maturity as of March 31, 2012, follow (in thousands). Maturities of amortizing securities are classified in accordance with their contractual repayment schedules. Expected maturities will differ from contracted maturities since issuers may have the right to call or prepay obligations without penalties.

		Available for Sale		Held to Maturity
		Amortized		Amortized
		Cost (1)	Fair Value	Cost	Fair Value
Years
Under 1	$	16,011	16,165	28,646	28,895
1 to 5		35,050	36,529	118,385	122,171
5 to 10		48,177	48,268	17,588	17,890
10 and over		5,112	4,886	845	1,153
Total	$	104,350	105,848	165,464	170,109
(1)Amortized cost includes a cumulative $360,000 write-down prior to 2010 for other-than-temporary impairment.

The following table presents the fair value of securities with gross unrealized losses at March 31, 2012, aggregated by category and length of time that individual securities have been in a continuous loss position (in thousands).

				Less than 12 months		Over 12 months		Total
				Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
Securities Available for Sale:				Value	Losses	Value	Losses	Value	Losses
	U.S. government sponsored enterprise obligations		$	21,965	113	-	-	21,965	113
	State and municipal obligations			309	2	1,268	14	1,577	16
	Corporate obligations			-	-	1,056	269	1,056	269
		Total temporarily impaired securities	$	22,274	115	2,324	283	24,598	398

Securities Held to Maturity:
	State and municipal obligations		$	15,819	121	4,572	61	20,391	182
		Total temporarily impaired securities	$	15,819	121	4,572	61	20,391	182

Substantially all of the unrealized losses on the Company's securities were caused by market interest rate changes from those in effect when the specific securities were purchased by the Company. The contractual terms of these securities do not permit the issuer to settle the securities at a price less than par value. Except for certain corporate obligations, all securities rated by an independent rating agency carry an investment grade rating. Because the Company does not intend to sell the securities and it believes it is not likely to be required to sell the securities before recovery of their amortized cost basis, which may be, and is likely to be, maturity, the Company does not consider these securities to be other-than-temporarily impaired at March 31, 2012, except as discussed below.

In the available-for-sale portfolio, the Company holds approximately $0.8 million of bank trust-preferred securities with an adjusted cost basis of $1.1 million.  These securities are backed by debt obligations of banks, with approximately $0.7 million of the securities backed by two of the largest U.S. banks and $0.1 million backed by a pool of banks’ debt in the form of a collateralized debt obligation (CDO). As a result of market upheaval, a lack of regular trading market in these securities, and bank failures, the fair value of these securities had fallen sharply in 2008 and continued to fall in the first half of 2009.  The Company recognized cumulative other-than-temporary-impairment (OTTI) amounting to $0.9 million on one CDO over several years. Management sold a portion of this security in 2011 and intends to sell the remainder in whole or in part over time. If the financial condition of the underlying banks deteriorates, further write-downs could occur before a sale, which would be reflected in the statement of operations. The maximum potential write-down would be its current carrying value of less than $0.1 million.

7

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

(2) Securities (continued)

Amortized cost and fair value of available-for-sale and held-to-maturity securities at December 31, 2011 are summarized as follows:

				December 31, 2011
					Gross Unrealized
				Amortized			Fair
				Cost	Gains	Losses		Value
Securities Available for Sale:
	U.S. Treasury		$	502	-	-		502
	U.S. government sponsored enterprise obligations			55,766	377	(18)		56,125
	State and municipal obligations			53,531	1,917	(23)		55,425
	Corporate obligations			1,093	2	(296)		799
	Equity securities			1,295	112	-		1,407
		Total securities Available for Sale	$	112,187	2,408	(337)		114,258
		(1)Amortized cost includes cumulative write-downs of $360,000 prior to 2010 for other-than-temporary impairment.

Securities Held to Maturity:
	U.S. government sponsored enterprise obligations		$	1,007	1	-	1,008
	State and municipal obligations			165,348	5,113	(135)	170,326
	Corporate obligations			870	313	-	1,183
		Total Securities Held to Maturity	$	167,225	5,427	(135)	172,517

The following table presents the fair value of securities with gross unrealized losses at December 31, 2011, aggregated by category and length of time that individual securities have been in a continuous loss position (in thousands).

				Less than 12 months		Over 12 months		Total
			Fair		Unrealized	Fair	Unrealized	Fair	Unrealized
Securities Available for Sale:				Value	Losses	Value	Losses	Value	Losses
	U.S. government sponsored enterprise obligations		$	7,610	18	-	-	7,610	18
	State and municipal obligations			355	3	996	20	1,351	23
	Corporate obligations			-	-	759	296	759	296
		Total temporarily impaired securities	$	7,965	21	1,755	316	9,720	337
Securities Held to Maturity:
	State and municipal obligations		$	7,886	80	4,647	55	12,533	135
		Total temporarily impaired securities	$	7,886	80	4,647	55	12,533	135

(3) Loans and Allowance for Loan Losses

Loans, other than loans designated as held for sale, are stated at the principal amount outstanding net of deferred origination costs. Interest and deferred fees and costs on loans are credited to income based on the effective interest method. Loans held for sale are carried at the lower of cost or fair value.

8

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The accrual of interest on commercial and real estate loans is generally discontinued, and previously accrued interest is reversed, when the loans become 90 days delinquent or when, in management’s judgment, the collection of principal and interest is uncertain. Loans are returned to accrual status when the doubt no longer exists about the loan's collectability and the borrower has demonstrated a sustained period of timely payment history. Specifically, the borrower will have resumed paying the full amount of scheduled interest and principal payments; all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment within a reasonable period (six months); and there is a sustained period of repayment performance (generally a minimum of six months) by the borrower, in accordance with the contractual terms involving payments of cash or cash equivalents.  Interest on consumer loans is accrued until the loan becomes 120 days past due at which time principal and interest are generally charged off.

Management, considering current information and events regarding the borrowers’ ability to repay their obligations, considers a loan to be impaired when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. When a loan is considered to be impaired, and sufficient information exists to make a reasonable estimate of the inherent loss, the amount of the impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or as a practical expedient, at the loan’s observable fair value or the fair value of underlying collateral if the loan is collateral-dependent.  In the absence of sufficient, current data to make a detailed assessment of collateral values or cash flows, management measures impairment on a pool basis using historical loss factors equivalent to similarly impaired loans. Impairment reserves are included in the allowance for loan losses through a charge to the provision for loan losses. Cash receipts on impaired loans are generally applied to reduce the principal balance outstanding. In considering loans for evaluation of specific impairment, management generally excludes smaller balance, homogeneous loans: residential mortgage loans, home equity loans, and all consumer loans, unless such loans were restructured in a troubled debt restructuring. These loans are collectively evaluated for risk of loss on a pool basis.

Loans

The Company's market area is generally Ontario County and Monroe County of New York State. Substantially all loans are made in its market area. Accordingly, the ultimate collectability of a substantial portion of the Company's loan portfolio is susceptible to changes in the economic conditions in this area. The Company's concentrations of credit risk are as disclosed in the following table of loan classifications. The concentrations of credit risk in related loan commitments and letters of credit parallel the loan classifications reflected. Other than general economic risks, management is not aware of any material concentrations of credit risk to any industry or individual borrower.

The major classifications of loans at March 31, 2012 and December 31, 2011, follow (in thousands), along with a description of their underwriting and risk characteristics:

			2012	2011
Commercial and industrial		$	198,118	198,744
Mortgages:
	Commercial		493,457	467,413
	Residential  - first lien		262,770	256,173
	Residential  - second lien		100,368	101,877
Consumer:
	Automobile - indirect		261,619	227,541
	Other		24,087	25,583
Loans held for sale			11,636	7,556
	Total loans		1,352,055	1,284,887
Plus - Net deferred loan costs			9,054	7,634
Less - Allowance for loan losses			(16,841)	(16,095)
	Loans - net	$	1,344,268	1,276,426

Commercial and Industrial Loans: These loans generally include term loans and lines of credit.  Such loans are made available to businesses for working capital (including inventory and receivables), business expansion (including acquisition of real estate, expansion and improvements) and equipment purchases. As a general practice, a collateral lien is placed on equipment or other assets owned by the borrower.  These loans carry a higher risk than commercial real estate loans by the nature of the underlying collateral, which can be business assets such as equipment and accounts receivable. To reduce the risk, management also attempts to secure secondary collateral, such as real estate, and obtain personal guarantees of the borrowers.  To further reduce risk and enhance liquidity, these loans generally carry variable rates of interest, repricing in three- to five-year periods, and have a maturity of five years or less. Lines of credit generally have terms of one year or less and carry floating rates of interest (e.g., prime plus a margin).

9

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Commercial Mortgages: Commercial real estate loans are made to finance the purchases of real property which generally consists of real estate with completed structures. These commercial real estate loans are secured by first liens on the real estate, which may include apartments, commercial structures housing businesses, healthcare facilities, and other non-owner occupied facilities.  These loans are considered by the Company to be less risky than commercial and industrial loans, since they are secured by real estate and buildings. The loans typically have adjustable interest rates, repricing in three- to five-year periods, and require principal payments over a 10- to 25-year period.  Many of these loans include call provisions within 10 to 15 years of their origination. The Company’s underwriting analysis includes credit verification, independent appraisals, a review of the borrower's financial condition, and the underlying cash flows. These loans are typically originated in amounts of no more than 80% of the appraised value of the property serving as collateral.

Residential First-Lien Mortgages: We originate adjustable-rate and fixed-rate, one-to-four-family residential real estate loans for the construction, purchase or refinancing of a mortgage.  These loans are collateralized by owner-occupied properties located in the Company’s market area. They are amortized over five to 30 years. Substantially all residential loans secured by first mortgage liens are originated by CNB Mortgage and sold to either the Bank or third-party investors.  Generally, fixed-rate mortgage loans with a maturity or call date of ten years or less and a rate of 5% or more are retained in the Company’s portfolio.  For longer term, fixed-rate residential mortgages without escrow, the Company generally retains the servicing, but sells the right to receive principal and interest to Federal Home Loan Mortgage Company, also known as Freddie Mac.  All loans not retained in the portfolio or sold to Freddie Mac are sold to unrelated third parties with servicing released.  This practice allows the Company to manage interest rate risk, liquidity risk, and credit risk.  From time to time, the Company may also purchase residential mortgage loans which are originated and serviced by third parties. In an effort to manage risk of loss and strengthen secondary market liquidity opportunities, management typically uses secondary market underwriting, appraisal, and servicing guidelines.  Loans on one-to-four-family residential real estate are mostly originated in amounts of no more than 85% of appraised value or have private mortgage insurance. Mortgage title insurance and hazard insurance are normally required. Construction loans have a unique risk, because they are secured by an incomplete dwelling. This risk is reduced through periodic site inspections, including at each loan draw period.

Residential Second-Lien Mortgages: The Company originates home equity lines of credit and second mortgage loans (loans secured by a second [junior] lien position on one-to-four-family residential real estate).  These loans carry a higher risk than first mortgage residential loans as they are in a second position relating to collateral.  Risk is reduced through underwriting criteria, which include credit verification, appraisals, a review of the borrower's financial condition, and personal cash flows.  A security interest, with title insurance when necessary, is taken in the underlying real estate.

Consumer Loans:  The Company funds a variety of consumer loans, including direct and indirect automobile loans, recreational vehicle loans, boat loans, aircraft loans, home improvement loans, and personal loans (collateralized and uncollateralized). Most of these loans carry a fixed rate of interest with principal repayment terms typically ranging from one to ten years, based upon the nature of the collateral and the size of the loan. The majority of consumer loans are underwritten on a secured basis using the underlying collateral being financed or a customer's deposit account. A small amount of loans are unsecured, which carry a higher risk of loss.

Loans Held for Sale:  These are the Residential First-Lien Mortgages, discussed above, which are sold to Freddie Mac and other third parties. These loans are carried at their lower of cost or fair value, calculated on a loan-by-loan basis.

Allowance for Loan Losses

The allowance for loan losses is a valuation reserve for probable and inherent losses in the loan portfolio. Credit losses arise primarily from the loan portfolio, but may also be derived from other credit-related sources, when drawn upon, such as commitments, guarantees, and standby letters of credit. Additions are made to the allowance through periodic provisions, which are charged to expense. All losses of principal are charged to the allowance when incurred or when a determination is made that a loss is expected. Subsequent recoveries, if any, are credited to the allowance.

The Company has established a process to assess the adequacy of the allowance for loan losses and to identify the risks in the loan portfolio. This process consists of the identification of specific and pool-based reserves for impaired commercial loans and residential mortgages, and the calculation of general reserves, which is a formula-driven allocation.

The calculation of the general reserve involves several steps. A historical loss factor is applied to each loan by loan type and loan classification. The historical loss factors are calculated using a loan-by-loan, trailing eight-quarter net loss migration analysis for commercial loans. For all other loans, a portfolio-wide, trailing eight-quarter net loss migration analysis is used. Adjustments are then made to the historical loss factors based on current-period quantitative objective elements (delinquency, non-performing assets, classified/criticized loan trends, charge-offs, concentrations of credit, recoveries, etc.) and subjective elements (economic conditions, portfolio growth rate, portfolio management, credit policy, and others). This methodology is applied to the commercial, residential mortgage, and consumer portfolios, and their related off-balance sheet exposures. Any allowance for off-balance sheet exposures is recorded in Other Liabilities.

While management uses available information to recognize losses on loans, future additions to the allowance may be necessary. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination.

10

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

A summary of the changes in the allowance for loan losses follows (in thousands). Notwithstanding the estimated allocations set forth in any table, the entirety of the allowance is available to absorb losses in any portfolio:

		For the Three-Month Periods
		Ended March 31,
		2012	2011
Balance at the beginning of period	$	16,095	15,635
Loans charged off		(710)	(705)
Recoveries of loans charged off		306	230
Provision charged to operations		1,150	750
Balance at end of period	$	16,841	15,910

The following tables present an analysis of the allowance for loan losses by loan type, including a summary of the loan types individually and collectively evaluated for impairment as of March 31, 2012 and 2011 (in thousands):

				Residential	Residential
				mortgage  -	mortgage  -			Loans
		Commercial	Commercial	first	second	Consumer -	Consumer -	held for
		and industrial	mortgage	position	position	indirect	other	sale	Unallocated	Total
Beginning Balance	$	6,393	994	1,786	521	4,839	916	-	646	16,095
Charge-offs		(191)	-	(75)	(3)	(283)	(158)	-	-	(710)
Recoveries		38	2	6	2	175	83	-	-	306
Provision		(1,362)	286	190	14	1,130	381	-	511	1,150
Ending Balance	$	4,878	1,282	1,907	534	5,861	1,222	-	1,157	16,841
of which:
Amount for loans individually
evaluated for impairment	$	1,079	443	-	-	-	-	-	-	1,522
Amount for loans collectively
evaluated for impairment	$	3,799	839	1,907	534	5,861	1,222	-	1,157	15,319
Balance of loans individually
evaluated for impairment	$	3,668	11,545	-	29	-	-	-	-	15,242
Balance of loans collectively
evaluated for impairment	$	194,450	481,912	262,770	100,339	261,619	24,087	11,636	9,054	1,345,867

				Residential	Residential
				mortgage  -	mortgage  -			Loans
		Commercial	Commercial	first	second	Consumer -	Consumer -	held for
		and industrial	mortgage	position	position	indirect	other	sale	Unallocated	Total
Beginning Balance	$	6,364	1,371	1,304	563	4,196	1,155	-	682	15,635
Charge-offs		(155)	-	-	-	(402)	(148)	-	-	(705)
Recoveries		15	-	-	1	141	73	-	-	230
Provision		(348)	300	362	23	206	(269)	-	476	750
Ending Balance	$	5,876	1,671	1,666	587	4,141	811	-	1,158	15,910
of which:
Amount for loans individually
evaluated for impairment	$	705	80	101	47	-	-	-	-	933
Amount for loans collectively
evaluated for impairment	$	5,171	1,591	1,565	540	4,141	811	-	1,158	14,977
Balance of loans individually
evaluated for impairment	$	1,508	1,449	669	54	-	-	-	-	3,680
Balance of loans collectively
evaluated for impairment	$	197,067	431,604	234,606	93,904	173,412	27,170	4,247	5,540	1,167,550

The balance in the allowance for loan losses increased to $16.8 million at March 31, 2012 compared to $16.1 million December 31, 2011, and from $15.9 million at March 31, 2011. In determining the level of allowance necessary, we considered a number of factors.  The most significant factor in the first quarter of 2012 was growth in the portfolio, which amounted to an annualized rate of 21% for the three-month period from December 31, 2011, and 16% for the twelve-month period from March 31, 2011.  However, the balance in the allowance did not increase by these percentages due to specific portfolio factors, which include, (a) a reduction in the loss factor applied to Substandard-rated Commercial and Industrial Loans, (b) an increase in reserves for impaired loans, (c) a decline in

11

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

annualized net charge-offs, and (d) a decline in the ratio of non-performing loans to total loans.  Economic conditions were also considered in our determination of the allowance.  Given improvements we have seen in the economy, we have reduced our economic qualitative factors.  

More specifically, since December 31, 2011, we have reduced the allocated allowance to Commercial and Industrial loans as discussed above.  Increases in allocations for the other major loan categories occurred principally due to loan portfolio growth, while the unallocated portion has increased principally due to a combination of factors related to changes in the portfolio and related quantitative and qualitative factors.

In monitoring the credit quality of the portfolio, management applies a credit quality indicator to substantially all commercial loans. These quality indicators, as more fully described in the 2011 Annual Report, range from one through eight in increasing risk of loss. These ratings are used as inputs to the calculation of the allowance for loan losses. Loans rated 1 through 4 are generally allocated a lesser percentage allocation in the allowance for loan losses than loans rated from 5 through 8. Residential Mortgage Loans are generally rated 9, unless they are used to partially collateralize commercial loans, in which case they carry the rating of the respective commercial loan relationship, or if management wishes to recognize a well defined weakness or loss potential to more accurately reflect credit risk. Unrated loans are allocated a percentage of the allowance for loan losses on a pooled-basis.

The following tables present the loan portfolio as of March 31, 2012 and December 31, 2011 by credit quality indicator (in thousands). Except for loans in the 9 and unrated categories, credit quality indicators are reassessed for each applicable loan at least annually, generally upon the anniversary of the loan’s origination or receipt and analysis of the borrower’s financial statements, when applicable, or in the event that information becomes available that would cause us to re-evaluate.

Loans in category 9 and unrated are evaluated for credit quality after origination based upon delinquency status. (See Aging Analysis table).

Credit Quality Indicator Analysis as of March 31, 2012
				Residential	Residential
				mortgage  -	mortgage  -			Loans	Deferred
		Commercial	Commercial	first	second	Consumer -	Consumer -	held for	Fees and
		and industrial	mortgage	position	position	indirect	other	sale	Costs	Total
1-Superior	$	10,377	-	-	-	-	816	-	-	11,193
2-Good		8,268	26,459	1,656	3,172	-	1,084	-	-	40,639
3-Satisfactory		69,249	195,085	1,280	564	-	-	-	-	266,178
4-Watch		43,078	209,335	4,834	106	-	-	-	-	257,353
5-Special Mention		12,041	6,289	1,009	-	-	-	-	-	19,339
6-Substandard		22,395	31,573	4,263	225	-	-	-	-	58,456
7-Doubtful		-	-	7	-	-	-	-	-	7
Subtotal	$	165,408	468,741	13,049	4,067	-	1,900	-	-	653,165
9 and not rated		32,710	24,716	249,721	96,301	261,619	22,187	11,636	9,054	707,944
Total	$	198,118	493,457	262,770	100,368	261,619	24,087	11,636	9,054	1,361,109

Credit Quality Indicator Analysis as of December 31, 2011
				Residential	Residential
				mortgage  -	mortgage  -			Loans	Deferred
		Commercial	Commercial	first	second	Consumer -	Consumer -	held for	Fees and
		and industrial	mortgage	position	position	indirect	other	sale	Costs	Total
1-Superior	$	9,814	105	-	-	-	913	-	-	10,832
2-Good		8,826	26,195	1,718	2,560	-	-	-	-	39,299
3 Satisfactory		68,246	177,882	1,409	576	-	-	-	-	248,113
4 Watch		43,928	210,901	6,045	269	-	-	-	-	261,143
5 Special Mention		7,864	4,645	1,127	-	-	-	-	-	13,636
6 Substandard		29,440	30,018	4,496	453	-	100	-	-	64,507
7 Doubtful		-	-	-	7	-	-	-	-	7
8 Loss		-	-	-	-	-	-	-	-	-
Subtotal	$	168,118	449,746	14,795	3,865	-	1,013	-	-	637,537
9 and not rated		30,626	17,667	241,378	98,012	227,541	24,570	7,556	7,634	654,984
Total	$	198,744	467,413	256,173	101,877	227,541	25,583	7,556	7,634	1,292,521

12

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

A summary of information regarding nonaccruing loans and other nonperforming assets as of March 31, 2012, December 31, 2011, and March 31, 2011 follows (in thousands):

			March 31,		December 31,		March 31,
				2012		2011		2011
Accruing loans 90 days or more delinquent			$	554		969		208
Nonaccruing loans				19,358		17,307		22,760
		Total nonperforming loans		19,912		18,276		22,968
Other real estate owned				3,562		4,632		3,836
	(less write-down of other real estate owned)			(435)		(397)		(551)
		Total nonperforming assets	$	23,039		22,511		26,253

13

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following tables present, as of March 31, 2012 and December 31, 2011, additional details about the loan portfolio in the form of an aging analysis of the loan portfolio. Amounts exclude deferred fees and costs (in thousands).

During the first quarter of 2012, we experienced an increase in past-due commercial mortgages, particularly in non-accrual loan, which was caused by one relationship.  Based upon available appraisals, we believe loans underlying the relationship are secured by collateral with values exceeding our carrying value.  We are in the process of re-appraising the collateral.  Also during the quarter we experienced an increase in past-due residential mortgages.  This is a seasonal trend which we historically experience in the first quarter of each year. However, included in the 60-89 category is one loan approximating $1.0 million, which, given the borrower’s payment patterns,  is likely to become non-accrual in the second quarter. We believe the underlying collateral, based upon appraisals on hand, is adequately secured.

Aging Analysis as of March 31, 2012
					90 Days				> 90 Days
			30-59 Days	60-89 Days	Or	Total		Total	and	Non-Accrual
			Past Due	Past Due	Greater	Past Due	Current	Loans	Accruing	Loans
Commercial and industrial		$	335	250	3,841	4,426	193,692	198,118	88	3,753
Commercial mortgages			1,497	1,326	11,572	14,395	479,062	493,457	-	11,572
Residential - first lien			3,084	1,415	4,249	8,748	254,022	262,770	390	3,859
Residential - junior lien			341	90	174	605	99,763	100,368	-	174
Consumer:
	Automobile - Indirect		1,310	726	61	2,097	259,522	261,619	61	-
	Other		204	21	15	240	23,847	24,087	15	-
Loans held-for-sale			-	-	-	-	11,636	11,636	-	-
		$	6,771	3,828	19,912	30,511	1,321,544	1,352,055	554	19,358

Aging Analysis as of December 31, 2011
					90 Days				> 90 Days
			30-59 Days	60-89 Days	Or	Total		Total	and	Non-Accrual
			Past Due	Past Due	Greater	Past Due	Current	Loans	Accruing	Loans
Commercial and industrial		$	395	432	3,992	4,819	193,925	198,744	75	3,917
Commercial mortgages			2,184	-	9,078	11,262	456,151	467,413	-	9,078
Residential - first lien			633	55	4,453	5,141	251,032	256,173	652	3,801
Residential - junior lien			444	91	419	954	100,923	101,877	8	411
Consumer:
	Automobile - indirect		1,766	653	165	2,584	224,957	227,541	165	-
	Other		257	88	169	514	25,069	25,583	69	100
Loans held-for-sale			-	-	-	-	7,556	7,556	-	-
Total		$	5,679	1,319	18,276	25,274	1,259,613	1,284,887	969	17,307

A summary of information regarding impaired loans follows (in thousands):

		As of and for	As of and for		As of and for
	the three-month		the year	the three-month
		period ended	ended		period ended
		March 31,	December 31,		March 31,
		2012	2011		2011
Recorded investment at period end	$	19,358	17,307		22,760
Impaired loans with specific related allowance at period end	$	3,929	2,453		3,680
Amount of specific related allowance at period end	$	1,522	1,138		933
Average investment during the period	$	19,545	20,394		22,069
Interest income recognized on a cash basis during the period	$	103	127		-

14

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The details of impaired loans as of March 31, 2012 and December 31, 2011 follow (in thousands)

March 31, 2012

					Unpaid	Specific	Average	Interest
				Recorded	principal	Related	Recorded	income
				Investment	balance	Allowance	Investment	Recognized
With no specific allowance
	Commercial and industrial		$	1,640	2,151	-	1,811	-
	Commercial mortgage			9,756	11,158	-	9,010	81
	Residential mortgage - first position			3,859	4,042	-	4,331	20
	Residential mortgage - second position			174	213	-	420	-
	Consumer - other			-	-	-	76	2
		Subtotal		15,429	17,564	-	15,648	103
With specific allowance
	Commercial and industrial			2,113	2,249	1,079	2,503	-
	Commercial mortgage			1,816	1,936	443	1,394	-
		Subtotal		3,929	4,185	1,522	3,897	-
		Total	$	19,358	21,749	1,522	19,545	103
Summary by portfolio:
Commercial			$	15,325	17,494	1,522	14,718	81
Residential				4,033	4,255	-	4,751	20
Consumer and other				-	-	-	76	2
		Total	$	19,358	21,749	1,522	19,545	103

December 31, 2011
					Unpaid	Specific	Average	Interest
				Recorded	principal	Related	Recorded	income
With  no specific allowance				Investment	balance	Allowance	Investment	Recognized
	Commercial and industrial		$	2,541	3,048	-	1,401	-
	Commercial mortgage			8,001	9,440	-	6,578	114
	Residential mortgage - first position			3,801	3,968	-	3,366	13
	Residential mortgage - second position			411	439	-	390	-
	Consumer - other			100	102	-	76	-
		Subtotal		14,854	16,997	-	11,811	127
With  specific allowance
	Commercial and industrial			1,376	1,454	895	3,079	-
	Commercial mortgage			1,077	1,153	243	3,988	-
	Residential mortgage - first position			-	-	-	1,265	-
	Residential mortgage - second position			-	-	-	201	-
		Subtotal		2,453	2,607	1,138	8,583	-
		Total	$	17,307	19,604	1,138	20,394	127
Summary by portfolio:
	Commercial		$	12,995	15,095	1,138	15,046	114
	Residential			4,212	4,407	-	5,222	13
	Consumer and other			100	102	-	126	-
		Total	$	17,307	19,604	1,138	20,394	127

15

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Troubled Debt Restructurings

In the process of resolving nonperforming loans, we may choose to restructure the contractual terms of certain loans and attempt to work out alternative payment schedules with the borrower in order to avoid foreclosure of collateral. Any loans that are modified are evaluated to determine if they are "troubled debt restructurings” (TDR) and if so, are evaluated for impairment.  A TDR is defined as a loan restructure where for legal or economic reasons related to a borrower’s financial difficulties, the creditor grants one or more concessions to the borrower that it would not otherwise consider. Terms of loan agreements may be modified to fit the ability of the borrower to repay in respect of its current financial status and restructuring of loans may include the transfer of assets from the borrower to satisfy debt, a modification of loan terms, or a combination of the two. If a satisfactory restructure and payment arrangement cannot be reached, the loan may be referred to legal counsel for foreclosure.

As of March 31, 2012 there were two relationships, one totaling $4.5 million and one totaling $0.3 million that were considered TDRs due to the nature of the concessions granted to the borrower. We have established no impairment reserve for either relationship in light of the value of underlying collateral and management’s recovery expectations. The balances of the underlying loans are included in non-performing loans. For the largest one, we renegotiated certain terms of their loans in 2010.  The significant term modified was the monthly principal and interest payment amount.  We agreed to forbear our rights under default provisions in the loan agreements on the condition that the borrower made monthly payments which were significantly less than those required under the terms of the original loan agreements. The customer was in compliance with the terms of the forbearance agreement which expired in March 2011. We have renewed the forbearance agreement for an additional 24 months with higher monthly payments than under the previous agreement.  The borrower has paid as agreed.

(4)   Loan Servicing Assets

The Company services first-lien, residential loans for the Federal Home Loan Mortgage Company (FHLMC), also known as Freddie Mac, and certain commercial loans as lead participant.  The associated servicing rights (assets) entitle the Company to a future stream of cash flows based on the outstanding principal balance of the loans and contractual servicing fees.  Failure to service the loans in accordance with contractual requirements may lead to a termination of the servicing rights and the loss of future servicing fees.  

The Company services all loans for FHLMC on a non-recourse basis; therefore, its credit risk is limited to temporary advances of funds to FHLMC, while FHLMC retains all credit risk associated with the loans.  Commercial loans are serviced on a non- recourse basis, whereby the Company is subject to credit losses only to the extent of the proportionate share of the loan’s principal balance owned. The Company’s contract to sell loans to FHLMC and to the Federal Housing Administration (FHA) via third-parties contain certain representations and warranties that if not met by the Company would require the repurchase of such loans. The Company has not historically been subject to a material volume of repurchases.

Gross servicing fees earned by the Company for the three-month periods ended March 31, 2012 and 2011, respectively, amounted to $346,000 and $343,000.  These fees are included in net mortgage servicing income on the statements of income.  

The following table presents the changes in loan servicing assets for the three-month periods ended March 31, 2012 and 2011, respectively, as well as the estimated fair value of the assets at the beginning and end of the period (in thousands).

		2012				2011
				Estimated				Estimated
		Book		Fair		Book		Fair
		Value		Value		Value		Value
Balance at January 1,	$	2,489	$	3,244	$	2,222	$	3,418
Originations		254				155
Amortization		(143)				(124)
Balance at March 31,	$	2,600	$	3,280	$	2,253	$	3,465

(5)   Capital Changes

At a special meeting of the Company’s shareholders held on September 14, 2011, the Company’s shareholders approved (a) a 4-for-1 forward stock split of the Company’s common stock (the “Stock Split”) and (b) a corresponding amendment to the Company’s Certificate of Incorporation that would affect the stock split by increasing the Company’s total number of authorized shares from 8,000,000 to 20,000,000 shares, increasing the authorized number of shares of common stock from 4,000,000 to 16,000,000 shares, including changing the par value per share from $20.00 to $5.00, and implementing the Stock Split. The amendment to the Company’s Certificate of Incorporation effecting the Stock Split was filed with New York State on September 20, 2011.  All share data presented in the Company’s financial statements and this Form 10-Q has been adjusted retroactively to reflect the Stock Split.

16

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

At the Company’s April 2011 Annual Meeting, shareholders authorized a class of 4,000,000 shares of preferred stock, $.01 par value.  No shares of preferred stock have been issued.

(6)   Dividend

On January 11, 2012, the Board of Directors declared a semi-annual $1.50 per share dividend on common stock to shareholders of record on January 21, 2012. The dividend was paid on February 1, 2012.  

(7)   Earnings Per Share

Basic earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of shares outstanding during the period.  Diluted earnings per share includes the maximum dilutive effect of stock issuable upon conversion of stock options. Calculations for the three-month periods ended March 31, 2012 and 2011 follow (dollars in thousands, except per share data):

				Three-months
				Ended March 31,
				2012		2011
Basic Earnings Per Share:
	Net income applicable to common shareholders			$	3,529		4,339
	Weighted average common shares outstanding				1,887,254		1,888,570
			Basic earnings per share	$	1.87		2.30
Diluted Earnings Per Share:
	Net income applicable to common shareholders			$	3,529		4,339
	Weighted average common shares outstanding				1,887,254		1,888,570
	Effect of assumed exercise of stock options				38,688		34,079
		Total			1,925,942		1,922,649
			Diluted earnings per share	$	1.83		2.26

17

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

(8)   Segment Information

The Company is organized into four reportable segments: the Company and its banking and Florida trust subsidiaries (Bank), CNB Mortgage Company (CNBM), Genesee Valley Trust Company (GVT), and WBI OBS Financial, LLC and its subsidiaries (OBS). These have been segmented due to differences in their distribution channels, the volatility of their earnings, and internal and external financial reporting requirements.  The interim period reportable segment information for the three-month periods ended March 31, 2012 and 2011 follows (dollars in thousands). The Company acquired a majority interest in OBS in November 2011; therefore, OBS segment information is only presented for the three-month period ended March 31, 2012.

Three months ended March 31,				2012
				Bank	CNBM	GVT	OBS	Intersegment	Total
Net interest income			$	16,193	2	3	-	(5)	16,193
Non-interest income				5,760	1,284	885	591	(338)	8,182
	Total revenues			21,953	1,286	888	591	(343)	24,375
Provision for loan losses				1,150	-	-	-	-	1,150
Intangible amortization				46	-	157	-	-	203
Other operating expenses				16,148	741	761	470	(179)	17,941
	Total expenses			17,344	741	918	470	(179)	19,294
		Income (loss) before tax		4,609	545	(30)	121	(164)	5,081
Income tax				1,510	215	(7)	-	(208)	1,510
	Net income attributable to noncontrolling interests
		and Canandaigua National Corporation		3,099	330	(23)	121	44	3,571
Less: Net income attributable to noncontrolling interests				-	-	-	42	-	42
	Net income attributable to
		Canandaigua National Corporation	$	3,099	330	(23)	79	44	3,529
Total identifiable assets			$	1,773,882	10,198	16,432	15,874	(17,004)	1,799,382

Three months ended March 31,				2011
				Bank	CNBM	GVT	Intersegment	Total
Net interest income			$	14,823	3	3	(6)	14,823
Non-interest income				6,022	736	1,037	(603)	7,192
	Total revenues			20,845	739	1,040	(609)	22,015
Provision for loan losses				750	-	-	-	750
Intangible amortization				50	-	172	-	222
Other operating expenses				13,956	571	744	(172)	15,099
	Total expenses			14,756	571	916	(172)	16,071
		Income (loss) before tax		6,089	168	124	(437)	5,944
Income tax				1,605	64	45	(109)	1,605
	Net income (loss)		$	4,484	104	79	(328)	4,339
Total identifiable assets			$	1,696,785	6,603	16,582	(8,646)	1,711,324

(9) Interest Rate Swap Agreements

The Company is exposed to interest rate risk as a result of both the timing of changes in interest rates of assets and liabilities, and the magnitude of those changes.  In order to reduce this risk for the Company’s $30.9 million floating-rate junior subordinated debenture, the Company entered into an interest rate swap agreement in 2007, which expired on June 15, 2011.  This interest rate swap

18

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

agreement modified the repricing characteristics of the debentures from a floating-rate debt (LIBOR +1.40%) to a fixed-rate debt (5.54%). For this swap agreement, amounts receivable or payable were recognized as accrued under the terms of the agreement, and the net differential was recorded as an adjustment to interest expense of the related debentures. The interest rate swap agreement was designated as a cash flow hedge. Therefore, the effective portion of the swap’s unrealized gain or loss was recorded as a component of other comprehensive income. The ineffective portion of the unrealized gain or loss, if any, was immediately reported in other operating income.  The swap agreement was carried at fair value in Other Liabilities on the Condensed Consolidated Statement of Condition.

In consideration of the expiration of the aforementioned agreement, the Company entered into a forward interest rate swap agreement on July 1, 2010.  This swap became effective on June 15, 2011 and expires on June 15, 2021.  This interest rate swap agreement modifies the repricing characteristics of the Company’s $30.9 million floating-rate junior subordinated debenture from a floating-rate debt (LIBOR +1.40%) to a fixed-rate debt (4.81%). The accounting for this is the same as the expired swap agreement.

In December 2012, the Company will be exposed to interest rate risk as a result of the timing of changes in interest rates associated with the $20.6 million fixed-to-floating junior subordinated debentures issued in June 2006.  In consideration of the end of the fixed-rate period, the Company entered into a forward interest rate swap agreement on December 22, 2011.  The Company designated the swap as a cash flow hedge, and it is intended to protect against the variability of cash flows associated with this debenture. This swap becomes effective on December 15, 2012 and expires on December 15, 2022.  This interest rate swap agreement will modify the repricing characteristics of the debenture from a floating-rate debt (LIBOR +1.44%) to a fixed-rate debt (3.859%).

(10) Fair Values of Financial Instruments

Current accounting pronouncements require disclosure of the estimated fair value of financial instruments. Fair value is generally defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly, non-distressed sale between market participants at the measurement date. With the exception of certain marketable securities and one-to-four-family residential mortgage loans originated for sale, the Company’s financial instruments are not readily marketable and market prices do not exist. The Company, in attempting to comply with accounting disclosure pronouncements, has not attempted to market its financial instruments to potential buyers, if any exist. Since negotiated prices in illiquid markets depend upon the then present motivations of the buyer and seller, it is reasonable to assume that actual sales prices could vary widely from any estimate of fair value made without the benefit of negotiations.  Additionally, changes in market interest rates can dramatically impact the value of financial instruments in a short period of time. Finally, the Company expects to retain substantially all assets and liabilities measured at fair value to their maturity or call date.  Accordingly, the fair values disclosed herein are unlikely to represent the instruments’ liquidation values, and do not, with the exception of securities, consider exit costs, since they cannot be reasonably estimated by management.

Accounting principles establish a three-level valuation hierarchy for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows.

·

Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

·

Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

·

Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.

19

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The estimated fair values and the valuation hierarchy of the Company's financial instruments are as follows (in thousands):

						March 31, 2012				December 31, 2011
				Fair Value	Carrying		Fair		Carrying		Fair
Financial Assets:				Hierarchy		Amount		Value		Amount		Value
	Cash and equivalents			1	$	105,573		105,573		126,740		126,740
	Securities, available-for-sale			1, 2, 3	$	107,330		107,330		114,258		114,258
	Securities, held-to-maturity			2	$	165,464		170,109		167,225		172,517
	FHLB stock and Federal Reserve Bank stock			3	$	2,656		2,656		2,656		2,656
	Loans-net			3	$	1,344,268		1,408,255		1,276,426		1,308,531
	Loan servicing assets			3	$	2,600		3,280		2,489		3,244
Financial Liabilities:
	Deposits:
		Demand, savings and
			money market accounts	3	$	1,188,421		1,188,421		1,148,406		1,148,406
		Time deposits		3	$	395,104		385,858		398,204		393,583
	Borrowings			2	$	-		-		-		-
	Junior subordinated debentures			2	$	51,547		52,299		51,547		52,185
Other financial instruments:
	Interest rate swap agreements			2	$	(3,313)		(3,313)		(4,415)		(4,415)
	Letters of credit			2	$	(217)		(217)		(233)		(233)

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Cash and Equivalents

For these short-term instruments that generally mature in 90 days or less, or carry a market rate of interest, the carrying value approximates fair value.

Securities

Fair values for securities are determined using independent pricing services and market-participating brokers, or matrix models using observable inputs. The pricing service and brokers use a variety of techniques to arrive at fair value including market maker bids, quotes and pricing models.  Inputs to their pricing models include recent trades, benchmark interest rates, spreads, and actual and projected cash flows. Management obtains a single market quote or price estimate for each security.  None of the quotes or estimates is considered a binding quote, as management would only request a binding quote if management had the positive intent to sell the securities in the foreseeable future and management believed the price quoted represented one from a market participant with the intent and the ability to purchase. Management evaluates the supplied price quotes against expectations of general price trends associated with changes in the yield curve and by comparing prices to the last period’s price quote. Management employs an internal matrix model for non-traded municipal securities.  The matrix model considers observable inputs, such as benchmark interest rates and spreads.

Certain securities’ fair values are determined using unobservable inputs and include bank-debt-based CDOs. There is a very limited market and limited demand for these CDOs due to imbalances in marketplace liquidity and the uncertainty in evaluating the credit risk in these securities. In determining fair value for these securities, management considered various inputs. Management considered fair values from brokerage firms which were determined using assumptions as to expected cash flows and approximate risk-adjusted discount rates.

There is no market for stock issued by the Federal Home Loan Bank and the Federal Reserve Bank. Member banks are required to hold this stock.  Shares can only be sold to the issuer at par. Fair value is estimated to equal book value.

Loans

20

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by interest type such as floating, adjustable, and fixed-rate, and by portfolios such as commercial, mortgage, and consumer.

The fair value of performing loans is calculated by discounting scheduled cash flows through the loans' estimated maturity using estimated market discount rates that reflect the credit and interest rate risk inherent in the loan category. The estimate of maturity is based on the average maturity for each loan classification.

Delinquent loans (not in foreclosure) are valued using the method noted above, and also consider the fair value of collateral for collateral-dependent loans. While credit risk is a component of the discount rate used to value loans, delinquent loans are presumed to possess additional risk. Therefore, the calculated fair value of loans is reduced by the allowance for loan losses.

The fair value of loans held for sale is estimated based on outstanding investor commitments or in the absence of such commitments, is based on current yield requirements or quoted market prices.

Loan Servicing Assets

Fair value is determined through estimates provided by a third party. To estimate the fair value, the third party considers market prices for similar assets and the present value of expected future cash flows associated with the servicing assets calculated using assumptions that market participants would use in estimating future servicing income and expense. Such assumptions include estimates of the cost of servicing loans, loan default rates, an appropriate discount rate, and prepayment speeds.  The key economic assumptions used to determine the fair value of mortgage servicing rights at March 31, 2012 and 2011, and the sensitivity of such values to changes in those assumptions are summarized in the 2011 Annual Report and are substantially unchanged.

Deposits

The fair value of demand deposits, savings accounts, and money market accounts is the amount payable on demand at the reporting date. The fair value of fixed maturity time deposits is estimated using a discounted cash flow approach that applies current market rates to a schedule of aggregated expected maturities of time deposits.

Junior Subordinated Debentures

There is no trading market for the Company’s debentures.  Therefore the fair value of junior subordinated debentures is determined using an expected present value technique. The fair value of the adjustable-rate debentures approximates their face amount, while the fair value of fixed-rate debentures is calculated by discounting scheduled cash flows through the debenture’s estimated maturity using current market rates.

Interest Rate Swap Agreements (Swaps)

The fair value of swaps is the amount the Company would expect to pay to terminate the agreements and is based upon the present value of expected future cash flows using the LIBOR swap curve, the basis for the underlying interest rates.  

Other Financial Instruments

The fair values of letters of credit and unused lines of credit approximate the fee charged to make the commitments.

21

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

(11) Fair Values Measurements

The following table presents for each of the fair-value hierarchy levels the Company’s assets and liabilities that are measured at fair value on a recurring and non-recurring basis at March 31, 2012, by caption on the Condensed Consolidated Balance Sheet (dollars in thousands).

							Internal models	Internal models
						Quoted market	with significant	with significant	Total carrying
						prices in active	observable market	unobservable market	value in the
						markets	parameters	parameters	Consolidated
						(Level 1)	(Level 2)	(Level 3)	Balance Sheet
Measured on a recurring basis:
	Assets
		Securities available-for-sale:
			U.S. Treasury		$	502	-	-	502
			U.S. government sponsored
				enterprise obligations		-	51,303	-	51,303
			State and municipal obligation			-	53,216	-	53,216
			All other			-	2,212	97	2,309
				Total assets	$	502	106,731	97	107,330
	Liabilities
		Interest rate swap agreement			$	-	3,313	-	3,313
		Letters of credit				-	217	-	217
				Total liabilities	$	-	3,530	-	3,530
Measured on a non-recurring basis:
	Assets
		Loans
			Loans-held-for-sale		$	-	11,636	-	11,636
			Collateral dependent impaired loans			-	-	3,929	3,929
			Other real estate owned			-	-	3,127	3,127
			Loan servicing assets			-	-	2,600	2,600
				Total assets	$	-	11,636	9,656	21,292

The Company values impaired loans and other real estate owned at the time the loan is identified as impaired or when title to the property passes to the Company.  The fair values of such loans and real estate owned are estimated using Level 3 inputs in the fair value hierarchy.  Each loan’s collateral and real estate property has a unique appraisal and management’s consideration of any discount of the value is based on factors unique to each impaired loan and real estate property.  The significant unobservable input in determining the fair value is management’s subjective discount on appraisals of the collateral securing the loan or real estate property, which ranges from 10%-50%.  Collateral for impaired loans may consist of real estate and/or business assets including equipment, inventory and/or accounts receivable and the value of these assets is determined based on appraisals by qualified licensed appraisers hired by the Company.  Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, estimated costs to sell, and/or management’s expertise and knowledge of the client and the client’s business.

As more fully described in the prior note, the Company evaluates and values loan servicing assets on a quarterly basis at their lower of amortized cost or fair value.  The fair values of these assets are estimated using Level 3 inputs in the fair value hierarchy. Fair value is determined through estimates provided by a third party or by management by reference to rights sold on similar loans during the quarter. When values are estimated by management using market prices for similar servicing assets, certain discounts may be applied to reflect the differing rights underlying the loan servicing contract. These discounts may range from 25 to 75 basis points of the principal balance of the underlying loan. Such discounts represent the significant unobservable input.

22

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table shows a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three-month period ended March 31, 2012 (in thousands).  During the three-month period certain securities were transferred to Level 2 classification.  These securities are now showing an active trading market, which has resulted in fair values with significant observable elements.

		Three months ended
		March 31, 2012
Securities available for sale, beginning of period	$	799
Securities transferred to Level 2 during period		(730)
Unrealized gain included in other comprehensive income		28
Securities available for sale, end of period	$	97

23

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents for each of the fair-value hierarchy levels the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis at December 31, 2011, by caption on the Consolidated Balance Sheet (dollars in thousands).

							Internal models	Internal models
						Quoted market	with significant	with significant	Total carrying
						prices in active	observable market	unobservable market	value in the
						markets	parameters	parameters	Consolidated
						(Level 1)	(Level 2)	(Level 3)	Balance Sheet
Measured on a recurring basis:
	Assets
		Securities available-for-sale:
			U.S. Treasury		$	502	-	-	502
			U.S. government sponsored
				enterprise obligations		-	56,125	-	56,125
			State and municipal obligation			-	55,425	-	55,425
			All other			-	1,407	799	2,206
				Total assets	$	502	112,957	799	114,258
	Liabilities
		Interest rate swap agreement			$	-	4,415	-	4,415
		Letters of credit				-	233	-	233
				Total liabilities	$	-	4,648	-	4,648
Measured on a non-recurring basis:
	Assets
		Loans
			Loans-held-for-sale		$	-	7,556	-	7,556
			Collateral dependent impaired loans			-	-	2,453	2,453
		Other assets
			Other real estate owned			-	-	4,235	4,235
			Loan servicing assets			-	-	2,489	2,489
				Total assets	$	-	7,556	9,177	16,733

The following table shows a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three-month period ended March 31, 2011  (in thousands).

		Three months ended
		March 31, 2011
Securities available for sale, beginning of period	$	958
Unrealized gain included in other comprehensive income		37
Securities available for sale, end of period	$	995

(12) Accounting Pronouncements Implemented in the Current Year

We implemented the following Accounting Standards Updates (ASU) as of January 1, 2012 with no impact to our financial condition or results of operations. However, some footnote disclosures were revised:

ASU 2011-03. Reconsideration of Effective Control for Repurchase Agreements, issued April 2011. The main objective in developing this Update was to improve the accounting for repurchase agreements (repos) and other agreements that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. The amendments in this Update removed from the assessment of effective control (1) the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee, and (2) the collateral maintenance implementation guidance related to that criterion. Other criteria applicable to the assessment of effective control were not changed by the amendments in this Update. Since the Company does not currently engage in these types of transactions, the Update had no impact on the Company’s financial condition or results of operations upon implementation.

24

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

ASU 2011-04 Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, issued May 2011. The amendments were intended to converge fair value measurement and disclosure guidance in U.S. GAAP with the guidance in the International Accounting Standards Board’s concurrently issued IFRS 13, Fair Value Measurement. The amendments in ASU 2011-04 did not modify the requirements for when fair value measurements apply; rather, they generally represented clarifications on how to measure and disclose fair value under ASC 820, Fair Value Measurement.  In implementing this ASU, we expanded relevant disclosures for fair values of financial instruments and fair value measurements.

ASU 2011-05 Presentation of Comprehensive Income, issued June 2011. The objective of this Update was to improve the comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. The amendments required that all non-owner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. We used the two statement report by including a consolidated statement of comprehensive income.

In ASU 2011-12 Deferral of the Effective Date for Amendments to the Presentation of Reclassification of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05, the FASB  deferred the certain reporting requirements for reclassifications out of accumulated other comprehensive income on a components basis.

ASU 2011-08 Testing Goodwill for Impairment, issued September 2011. The objective of this Update was to simplify how entities, both public and non-public, test goodwill for impairment. The amendments in the Update permit an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The more-likely-than-not threshold is defined as having a likelihood of more than 50 percent. Previous guidance required an entity to test goodwill for impairment, on at least an annual basis, by comparing the fair value of a reporting unit with its carrying amount, including goodwill (step one). If the fair value of a reporting unit is less than its carrying amount, then the second step of the test must be performed to measure the amount of the impairment loss, if any. Under the amendments in this Update, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. Although this ASU became effective on January 1, 2012, we will not implement its provisions until the fourth quarter of 2012 when we perform our annual goodwill assessment.

(13) Acquisition

As more fully discussed in the 2011 Annual Report, in November 2011, the Company acquired a majority interest in WBI OBS Financial, LLC (WBI), a company formed to concurrently acquire OBS Holdings, Inc. (OBS).  As of March 31, 2012, the Company had not completed its comprehensive analysis of the fair value of assets acquired and liabilities assumed.  The Company expects to complete this analysis in 2012. There has been no change to the financial information presented in the 2011 Annual Report.

25

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following is our discussion and analysis of certain significant factors which have affected the Company's financial position and operating results during the periods included in the accompanying condensed consolidated financial statements. This discussion and analysis supplements our Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2011 Annual Report.

Critical Accounting Estimates

We are instructed, pursuant to SEC guidance, to evaluate and disclose those accounting estimates that we judge to be critical - those most important to the portrayal of the Company's financial condition and results, and that require our most difficult, subjective and complex judgments. We consider the Allowance for Loan Losses (allowance) as critical given the inherent uncertainty in evaluating the levels of the allowance required to reflect credit losses in the portfolio.  We also consider the valuation of investment securities for Other-Than-Temporary-Impairment (OTTI) as critical in the current market environment given the lack of an active and liquid market for a small number of our holdings. There has been no change in our methodology for estimating the allowance or securities’ valuation, which is fully described within the 2011 Annual Report.

Significant Corporate Events

Quite similar to the last quarter, on March 8, 2012, a sealed-bid public auction of our common stock yielded a new average price of $147.48, up 14.1% in one quarter over the previous price of $129.22 set in November, 2011.  This increase resulted in a pre-tax $1.7 million upward adjustment to our Stock Appreciation Rights liability, which is reflected in operating expenses.

Financial Overview

Diluted earnings per common share for the first quarter of 2012 declined 19.0% to $1.83 from $2.26 in the same quarter of 2011. Net income in these periods was $3.5 million and $4.3 million, respectively. Total assets at March 31, 2012 were $1,799.4 million compared to $1,761.5 million at December 31, 2011 and $1,771.3 million at March 31, 2011.

Earnings for the first quarter of 2012, as compared with the first quarter of 2011, reflected a strong 10.7% increase in total revenues (net interest income and other income) driven by business growth, a higher provision for loan losses, and, exclusive of the $1.7 million additional Stock Appreciation Rights liability accrual, operating expenses growth rate lower than the revenue growth rate.  Despite a general decline in asset yields, net interest income grew due to higher volumes of earning assets and a decline in interest costs. The higher provision for loan losses was driven by increased net new loans. Reflecting continued franchise growth, total operating expenses increased in many major categories. As anticipated, FDIC premiums were down due to changes in assessment rates.

We were encouraged by the substantial increase in average interest earnings assets, particularly since it occurred in the higher-yielding loan portfolio.  We experienced a planned decrease in federal funds sold, which were used to fund the loan growth.  Average interest bearing liabilities changed little, but their cost fell significantly.  Off-balance sheet, both the book value and fair value of Assets under Administration grew, reflecting new customer accounts and a significant improvement in stock market performance.

Financial Condition (three months ended March 31, 2012)

At March 31, 2012, total assets were $1,799.4 million, up $37.9 million or 2.2% from $1,761.5 million at December 31, 2011.

Cash and cash equivalents (cash, balances with other financial institutions, and federal funds sold) were $105.6 million at March 31, 2012, falling $21.2 million, impacted by an increase in loans and decrease in investment balances.

The securities portfolio fell to $272.8 million, a $8.7 million from December 31, 2011. Similar to 2011 we experienced a relatively high level of security calls (i.e., issuers repaid debt obligations before their stated maturities).   Market interest rates declined earlier in the first quarter this year.  This decline made it beneficial for issuers to call outstanding higher cost obligations and replace them with lower cost obligations. With this lower rate environment we found fewer investments with attractive terms (rate, maturity, credit quality) in which to invest.  With low rates and little inventory in the market, we purchased fewer investments in the early part of this quarter.  We will continue to pursue the purchase of securities to replace the volume called.  However, our ability to do so will be restricted by the low supply of high-quality US government sponsored enterprise obligations and municipal obligations, our preferred investment choices.

The securities portfolio consists principally of New York State municipal obligations (80.0% of total at March 31, 2012) with the remainder mostly in US government sponsored enterprise obligations.  The total fair value of both the available-for-sale and the held-to-maturity securities portfolios exceeded amortized cost as a result of a decrease in mid- and long-term market rates since the securities’ purchase. In both portfolios we hold some securities with fair values below their amortized cost and we concluded at March 31, 2012, that there are none considered to be other than temporarily impaired.

During the last twelve months a handful of non-New York State municipalities have declared bankruptcy.  Much continues to be written about high debt loads of many municipalities and other government entities and concern remains about the possibility of additional defaults given the budget pressures, including structural deficits that many municipalities face.  Our Company is an investor in state and

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municipal obligations. We invest only in New York State based obligors.  These investments are used to re-cycle the deposits of our local municipalities, and since we invest in New York State obligations, the money stays local and earns a tax-advantaged return.  Prior to purchasing an investment, our Treasury team performs a financial analysis of the obligor or the obligation using such tools as internal models, particularly for non-rated issuances, third-party analyses, and rating agency guidance. At March 31, 2012, 94% of the portfolio was rated A or better, 3% BBB, and 3% was unrated. In addition, 96% of the obligations were backed by third-party credit support, and 97% were general obligations of the municipalities with unlimited taxing authority. We found no evidence of credit deterioration in the portfolio at March 31, 2012.

Loans, exclusive of loans held for sale, grew $63.1 million during the first quarter of 2012 with the gross portfolio totaling $1,352.1 million compared to $1,284.9 million at December 31, 2011. This continues three quarters’ trend of net portfolio growth.  During this quarter we expected an increase in commercial loans given the strength in our pipeline.  We also continued to target growth in the indirect automobile portfolio by offering discounted interest rates.  We expect to see continued intense competition from banks, finance companies, and credit unions in the coming quarter.  With respect to our balance sheet, in the coming quarter we expect both the commercial and residential portfolios to show increase, and a tempering in growth of the indirect portfolio due to offering rate increases initiated late in this quarter.

Please see the section entitled “Impaired Loans and Non-Performing Assets” for a discussion of loan credit quality.

Total deposits at March 31, 2012, were $1,583.5 million and were up $36.9 million from December 31, 2011.  Growth occurred in all lower interest cost categories.  Net growth was seen in consumer and municipal deposits while business deposits were down.  Although the pace has slowed from recent past quarters, we continued to experience declines in time deposits, both consumer and business, and expect that to repeat throughout 2012 as a result of the generally low interest rate environment in which depositors prefer to keep excess funds liquid, awaiting higher rates and investment returns.  Since most of these matured time deposits were redeposited in other deposit types, there was no impact on overall liquidity.  However, the total cost of deposits (interest expense) did fall due to lower reinvestment rates available to depositors. Looking to the coming quarter, we expect consumer and commercial deposits to grow modestly and we expect little change in total municipal deposits.

As expected, there was no change in total borrowings. We do not expect to incur new long-term borrowings or need to access overnight borrowings for the foreseeable future, because the balance of federal funds sold and the strength of consumer and business deposit inflows should be sufficient to fund the increases we expect in earning assets.

Results of Operations (three months ended March 31, 2012)

Net interest income grew $1.4 million or 9.2% for the quarter compared to the same quarter in 2011, reflecting a widening of interest rate margin and spread.  Average earning asset balances grew and were invested in higher-yielding loans, replacing lower yielding Federal Funds Sold. With general interest rates remaining low we have seen both asset yields and liability costs fall year over year as maturing products are replaced at lower interest rates.  Given the length of this very low interest rate environment, we are likely to find fewer opportunities to significantly lower rates on deposit products, yet rates continue to fall on earning assets, which will eventually lead to lower interest rate spread and margin.

On a tax-equivalent basis, compared to the same quarter in 2011, the overall net growth in interest-earning assets and interest-bearing liabilities had a $2.0 million positive impact on net interest income, and the change in rates had a $0.6 million negative impact. Net interest margin was 4.16% for the first quarter of 2012, up from 3.96% during the same quarter in 2011.  As we discussed in our 2011 Annual Report, we expect full-year net interest income (revenue) to increase year-on-year due to expected balance sheet growth, but we expect little positive impact from rate changes given the current interest rate environment and our anticipation of continued low interest rates for the remainder of the year.

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Summary tax-equivalent net interest income information for the three-month periods ended March 31, 2012 and 2011 follows (dollars in thousands).

			2012						2011
						Annualized						Annualized
			Average			Average			Average			Average
			Balance		Interest	Rate			Balance		Interest	Rate
Interest-bearing deposits and
	fed funds sold	$	64,828	$	39	0.24	%	$	149,061	$	94	0.25	%
Securities			279,526		2,710	3.88			273,795		2,938	4.29
Loans, net			1,291,374		16,450	5.10			1,163,759		16,079	5.53
Total interest-earning assets			1,635,728	$	19,199	4.69	%		1,586,615	$	19,111	4.82	%
Non interest-earning assets			118,625						104,626
	Total assets	$	1,754,353					$	1,691,241
Total deposits		$	1,318,318	$	1,503	0.46	%	$	1,312,983	$	2,676	0.82	%
Total debt			51,547		696	5.40			51,661		745	5.77
Total interest-bearing liabilities			1,369,865	$	2,199	0.64	%		1,364,644	$	3,421	1.00	%
Non-interest bearing liabilities			251,023						203,231
Equity			133,465						123,366
	Total liabilities and equity	$	1,754,353					$	1,691,241
Interest rate spread						4.05	%					3.82	%
Net interest margin				$	17,000	4.16	%			$	15,690	3.96	%

The provision for loan losses was $1.2 million for the quarter, higher than the $0.8 million for the same quarter last year. The higher provision in the first quarter of 2012 was mostly driven by a higher overall loan portfolio balance coupled with stable asset quality and lower net charge-offs. Details of the allowance for loan losses and net charge-offs for the year to date is presented in Footnote 3 to the Condensed Consolidated Financial Statements.

Total other income for the quarter ended March 31, 2012 increased 13.8% to $8.2 million from $7.2 million in 2011.  Service charges on deposit accounts increased approximately $0.2 million due to higher revenues from our Courtesy Limit product and higher revenues for electronic banking services.  Account maintenance service charges (included in service charges) were flat year-on-year due to higher customer balances offsetting their periodic fees. Electronic banking services (debit and ATM card revenues) continued to increase with consumers shifting from cash and checks to electronic transactions. We expect these trends to continue through the remainder of the year.  

A consequence of the passage of Financial Reform Act is the potential negative industry-wide impact on debit card interchange income.  The so-called “Durbin Amendment” required the Federal Reserve Board to adopt regulations limiting interchange fees that can be charged in an electronic debit card transaction to the “reasonable and proportionate” costs related to the incremental cost of the transaction. Banks under $10 billion in assets are exempt, which includes the Company; therefore, we do not anticipate negative consequences.  However, merchants could choose to accept debit cards issued only by the largest banks, which are subject to the interchange limits.  If that were to occur, our customers would be inconvenienced and our electronic banking income reduced.  

Trust and investment services income grew 22.9% to $3.8 million for the first quarter of 2012 compared to $3.1 million for the same quarter in 2011. Total assets under administration (see table below) have grown year to year due to both organic growth in underlying accounts and higher fair value of assets within the accounts resulting from improved equity and bond markets. We anticipate book value growth to continue into the coming quarters with year-over-year growth rates expected to be in the 5% range. For the remainder of the year we anticipate fair value growth to moderate from this quarter’s growth rate given the sharp run-up of the markets in this first quarter.

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The following table presents information about period-end book value and fair value of assets under administration (dollars in thousands).

	Assets Under Administration
	as of
	(in thousands)
		March 31,	December 31,	March 31,
		2012	2011	2011
Book value	$	1,748,111	1,726,172	1,717,495
Fair value	$	1,991,810	1,858,130	1,928,261

The net gain on sale of mortgages was 61.9% higher in the first quarter of 2012 compared to the same quarter in 2011.  The total volume of closed loans was up 57.1% year over year (See table below).  Management’s efforts to improve pricing and reduce loan delivery penalties is paying off with improved profitability.  In the coming quarter, usually a heavier period for home sales and mortgage closings in our region, we expect volumes to be similar to this past quarter’s.  Normally they would be higher, but due to good weather, more home buying occurred in the first quarter than anticipated.  If volumes for the year are similar to 2011’s, we expect the net gain on sale of mortgages might be lower than last year, because we anticipate holding more loans in portfolio.

CNB Mortgage Closed Loans by Type
For the three-month periods ended March 31,
(dollars in thousands)
			2012		2011
Purchase money mortgages		$	28,495		17,862
Refinance mortgages			41,514		26,700
	Total mortgage originations	$	70,009		44,562
Percentage of loans retained in portfolio			26.9	%	21.4	%

Loan servicing fee income was essentially flat year over year with higher gross revenue offset by higher amortization of servicing rights caused by a higher year-over-year amortizable balance. We expect this historical level of income for the Company to remain as long as rates stay low and we sell loans with servicing retained. The heavy mortgage refinance activity during the past few years had led us to sell more originations to third parties rather than add these low-rate, long-term assets to our portfolio.  We service many of these originated loans on behalf of Freddie Mac.  The balance of loans serviced for Freddie Mac stood at $468.9 million at March 31, 2012 compared to $462.0 million at December 31, 2011, and $446.0 million at March 31, 2011.  We also earn servicing fees from sold commercial loan participations. The total balance of participations sold was $115.4 million at March 31, 2012 compared to $ 115.0 million at December 30, 2011, and $115.2 million at March 31, 2011.

Other operating income fell for the quarter compared to the same quarter in 2011, and can fluctuate from time to time depending upon earnings from our nonmarketable investments. In the first quarter of 2011, we recognized approximately $0.3 million from our investment in Cephas, while in the first quarter of 2012, the amount recognized was much lower. We expect to record earnings from this and other investments in the coming quarters, however the extent and timing cannot be determined.

Total operating expenses grew $2.8 million for the quarter ended March 31, 2012 compared to the same three-month period in 2011. Of this, $1.7 million was due to an additional accrual for stock appreciation rights liability (as noted previously), and $0.5 million was associated with OBS.  With the exception of the expected large drop in FDIC insurance expense that occurred in the first quarter of 2012, all major categories of expenses generally increased, and were consistent with the growth in our franchise: loans, deposits, assets under administration, etc.  The largest component increase, exclusive of the stock appreciation rights accrual, was in salaries and employee benefits reflecting the addition of new staff and raises for incumbents. Except for FDIC insurance, we expect all categories to continue to increase during the year consistent with our business growth goals.

The quarterly effective tax rate was 29.7% in 2012 and 27.0% in 2011.  The change in the effective rate is attributable to the ratio of tax-exempt income to total income. It is likely this rate will settle in  the 29% - 31% range through 2012 due to lower tax-exempt income from declining interest rates on tax-exempt bonds.

Liquidity

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There has been no material change from December 31, 2011 in our available sources of wholesale liquidity from either the Federal Home Loan Bank of New York (FHLB) or the Federal Reserve Bank of New York.  At March 31, 2012 we had no overnight or short-term borrowings outstanding, and during the quarter we did not utilize any overnight or short-term borrowings. Given our high level of federal funds sold and continued deposit inflows, we foresee no borrowings in the coming quarter; though we might consider raising medium- or long-term borrowings for interest rate risk management purposes.

For the three months ended March 31, 2012, cash flows from all activities used $21.2 million in net cash and cash equivalents versus providing $78.1 million for the same period in 2011.  In both years the principal source of cash inflows was deposits.  

Net cash provided by operating activities was $1.5 million in 2012 versus $14.2 million in 2011.  Both the largest source and use of operating cash in the first quarters of 2012 and 2011 were loans held for sale with origination and sales activity, which were approximately 45% higher in 2012 than in 2011. Excluding the effect of loans held for sale, operating activities provided $5.7 million and $4.4 million cash for each of the three-month periods in 2012 and 2011, respectively.

During the first quarter of 2012, investing activities used $56.8 million in cash and equivalents compared to providing $17.4 million in the same period of 2011. Each periods’ significant investing activities were opposite, with securities activities providing cash in 2012 and loan activities using cash, while in 2011, securities activities used cash and loan activities provided cash. For the remainder of the year we expect both securities and loan activities to utilize cash.

Cash provided by financing activities was $34.1 million in the first quarter of 2012 versus $46.5 million in the same period of 2011.  The main contributor in both periods was deposit activity.

For the remainder of 2012, cash for growth is expected to come primarily from operating activities and customer deposits.  Customer deposit growth is expected to come mainly from Monroe and Ontario Counties’ consumers and businesses.

Contractual obligations and commitments

Less material, but a part of our ongoing operations, and expected to be funded through normal operations, are liquidity uses such as lease obligations, long-term debt repayments, and other funding commitments. There has been no material change from the information disclosed in our 2011 Annual Report.

Also, as discussed more fully in our 2011 Annual Report, in the normal course of business, various commitments and contingent liabilities are outstanding. Because many commitments and almost all letters of credit expire without being funded in whole or in part, the notional amounts are not estimates of future cash flows.  The following table presents the notional amount of the Company's significant commitments. Most of these commitments are not included in the Company's consolidated balance sheet (in thousands).

			March 31, 2012	December 31, 2011
			Notional	Notional
			Amount	Amount
Commitments to extend credit:
	Commercial lines of credit	$	139,122	138,072
	Commercial real estate and construction	$	53,038	37,174
	Residential real estate at fixed rates	$	5,442	5,269
	Home equity lines of credit	$	193,393	186,902
	Unsecured personal lines of credit	$	16,794	16,326
Standby and commercial letters of credit		$	14,460	15,563
Commitments to sell real estate loans		$	11,636	7,556

Capital Resources

Under the regulatory framework for prompt corrective action, as of March 31, 2012, the Company and Bank are categorized as "well-capitalized."  This is unchanged from December 31, 2011, and management anticipates no change in this classification for the foreseeable future.

On September 12, 2010, the Basel Committee on Banking Supervision released its proposal for revising capital requirements for internationally active financial institutions. These new standards are called Basel III.  As a signatory to this proposal, the United States banking regulators will be revising capital standards for financial institutions in the U.S.  Accordingly, we expect our capital standards will change.  However, regulators have not released any new standards and are not expected to do so for some time.  Furthermore, the international standards do not become fully effective until 2018, which is likely when the U.S. standards would become fully effective.  It is too early to determine whether there will be any material impact to the Company.

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Credit-Related Information

Allowance for Loan Losses , Net Charge-offs, and Non-performing Loans

Credit-related statistics follow (dollars in thousands):

		March 31,		December 31,		March 31,
		2012		2011		2011
Allowance as a percentage of total period end loans		1.25	%	1.25	%	1.36	%
Allowance as a percentage of non-performing loans		84.58	%	88.07	%	69.27	%
Net charge-offs to average loans (annualized)		0.12	%	0.28	%	0.16	%
Non-performing loans to total period-end loans		1.47	%	1.42	%	1.97	%
Non-performing assets to total period-end
	loans and other real estate	1.70	%	1.75	%	2.25	%

The provision for loan losses for the three-month period ended March 31, 2012 was higher than the same period in 2011, due to substantially higher net loan growth offset by improved credit quality compared to 2011. The balance in the allowance for loan losses also increased during the quarter and was impacted by growth and higher quantitative factors from the eight-quarter loss migration applied to the residential mortgage and the consumer indirect portfolio.  Conversely the allowances associated with commercial loans were reduced due to lower quantitative factors. As discussed more fully in the 2011 Annual Report, we determine the amount necessary in the allowance for loan losses based upon a number of factors.  Based on our current assessment of the loan portfolio, we believe the amount of the allowance for loan losses at March 31, 2012 is appropriate at $16.8 million. However, should non-performing and non-accrual loans increase, or should we experience declines in customers’ credit quality measured through loan impairment or internal loan classifications, we may need to establish a higher allowance for loan losses as a percentage of total loans, which would necessitate an increase to the provision for loan losses.  

Net charge-offs in the first quarter of 2012 were $0.4 million, compared to $0.5 million in the first quarter of 2011.  Net charge-offs to average loans for the first three months fell in 2012 to 12 basis points compared to 16 basis points in 2011. In the coming quarters, we anticipate annualized net charge-offs in the 25-30 basis points range if we experience no significant portfolio deterioration.  

Total non-performing loans were $19.9 million at March 31, 2012, up from $18.3 million at December 31, 2011, but down from $23.0 million at March 31, 2011.  The general decline in non-performing loans since March 31, 2011, came mainly in commercial-related loans and residential mortgages.

Other real-estate owned has fallen $1.1 million since December 31, 2011 to $3.1 million at March 31, 2012, due to property liquidations, and is also down slightly from the first quarter of 2011. Given the current economic climate and overall growth in non-performing loans, we can expect additional foreclosures in the coming periods.

Impaired Loans

Total impaired loans have exhibited a positive trend during the past twelve months, having declined to $19.4 million at March 31, 2012 from $22.8 million at March 31, 2011 due to improvements in commercial and industrial loans and first-lien residential mortgages.  However, since year end 2011, total impaired loans increased $2.1 million mostly due to a commercial relationship. At March 31, 2012 we identified 91 loans totaling $19.4 million that were considered impaired.  Of these, 49, with an aggregate balance outstanding of $15.2 million were analyzed on a loan-by-loan basis, 10 of which, with an aggregate balance of $3.9 million, had specific reserves calculated amounting to $1.5 million. The remaining 42 loans totaling $4.2 million were evaluated for impairment on a collective basis.

Regional economic conditions continue to improve slowly.  Despite this, as in all economic cycles, we can anticipate more loans, though we know of no material ones, which will become impaired in the coming quarters.  Concurrently, we expect some loans, which are currently impaired, to improve over this same period, and we will likely see some impaired loans decline to loss status. Accordingly we do not expect the level of impaired loans to substantially change throughout the rest of 2012.

Impact of Financial Regulation Legislation

Management continues to navigate the myriad regulations and pronouncements resulting from the July 21, 2010 passing of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Financial Reform Act”). Most of the major regulations have yet to be enacted, but planning and managing their implementation requires considerable forethought.  Our employees are working tirelessly to develop

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cost-effective solutions.  The provisions expected to most significantly impact us are more fully described in the 2011 Annual Report.  During the first quarter of 2012 there were no regulations promulgated as a result of the Financial Reform Act that did or are expected to have a significant impact on the Company.

Recent Accounting Standards to be implemented in Future Periods

The following presents a summary of Accounting Standards Updates (ASU’s), exclusive of technical correction ASU’s that will be subject to implementation in future periods.

ASU 2011-11 Disclosures about Offsetting Assets and Liabilities, issued December 2011. The amendments in this Update require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position.  The amendments are intended to bring closer convergence of US GAAP with International Financial Reporting Standards (IFRS). The amendments are effective for us beginning in 2013. We do not anticipate any material impact to our financial statements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Interest Rate Sensitivity and Asset / Liability Management Review

As set forth in our 2011 Annual Report, we expected market interest rates for 2012 would remain fairly steady for most of the year at current historic lows with no measurable increase expected until 2014.  We have no reason at this time to change that expectation.

We measure net interest income at-risk by estimating the changes in net interest income resulting from instantaneous and sustained parallel shifts in interest rates of plus- or minus- 200 basis points over a twelve-month period.  This provides a basis or benchmark for our Asset/Liability Committee to manage our interest rate risk profile. Presented below is a table showing our interest rate risk profile at March 31, 2012 and December 31, 2011.

	Estimated
Changes in Interest	Percentage Change in
Rates	Future Net Interest Income
(basis points)	2012		2011
200	(2)	%	(4)	%
100	(4)		(6)
No change	-		-
-100	(1)		(0)
-200	(1)		(0)

Our model suggests our interest rate risk has decreased slightly from year end for upward changes in rates, and has increased slightly for downward changes in rates. Our exposure to smaller increases in rates has declined, because, we have more earning assets in higher yielding loans relative to the year-end 2011 balance sheet.  Our exposure to downward rate movements has increased due to the very low cost of deposits, which have little room to move lower regardless of the magnitude of market rate changes, while asset yields will continue to fall.  Notwithstanding, we believe rates are more likely than not to remain at these historically low levels through most of 2013.

Item 4. Controls and Procedures

The Company's Chief Executive Officer and Chief Financial Officer have concluded, based on their evaluation as of March 31, 2012, that the Company's disclosure controls and procedures (as defined in Securities Exchange Act Rules 13a-14(c) and 15d-14(c)) are effective to ensure that information required to be disclosed in the reports that the Company files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

Also, there have been no changes in the Company's internal control over financial reporting identified in connection with that evaluation, or that occurred during the first quarter of 2012, that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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PART II -- OTHER INFORMATION

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Item 1.  Legal proceedings

The Company and its subsidiaries are, from time to time, parties to or otherwise involved in legal proceedings arising in the normal course of business as either plaintiffs or defendants. Management does not believe that there is any pending or threatened proceeding against the Company or its subsidiaries which, if determined adversely, would have a material effect on the Company's business, results of operations, or financial condition.

Item 1A.  Risk Factors

There has been no material change to the risk factors disclosed in the 2011 Annual Report.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

From time to time, shares of our common stock are purchased by The Canandaigua National Bank and Trust Company (Bank) for the Arthur S. Hamlin Award, the Canandaigua National Corporation Employee Stock Ownership Plan (ESOP) and the Canandaigua National Corporation for treasury.  Each of these entities is considered an affiliated purchaser of the Company under Item 703 of Regulation S-K.  Shares repurchased by Company are not part of a publicly announced plan or program.  The Bank, ESOP, and Company purchase prices per share are determined based on the most recent price established at the sealed-bid auction immediately preceding the purchase. Purchases occur on an ad-hoc basis when shares become available in the marketplace and the Company is interested in purchasing these shares for the corporate purposes discussed above. Sales occur when corporate needs require the use of shares and there are none available in the market at the time.

There were no shares purchased or sold by the Company during the quarter ended March 31, 2012.

Item 3.  Defaults Upon Senior Securities

None

Item 4.  (Removed and Reserved)

Item 5.  Other information

Unresolved Staff Comments

None

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Common Stock Trades

All share and per share information in all tables has been adjusted to reflect the four-for-one forward stock split approved by the Company’s shareholders at a special meeting on September 14, 2011, and effected pursuant to an amendment to the Company’s Certificate of Incorporation, which was filed with New York State on September 20, 2011.

While the Company's stock is not actively traded, from time to time, shareholders sell shares to interested persons in sealed-bid public auctions administered by the Bank’s Trust Department at the request of selling shareholders. Our stock is not listed with a national securities exchange. Due to the limited number of transactions, the quarterly high, low and weighted average sale prices may not be indicative of the actual market value of the Company's stock. The following table sets forth a summary of transactions by selling shareholders and bidders in the Company's common stock during each period for transactions that were administered by the Bank’s Trust Department:

	Number of		Average		Highest		Lowest
Date of	Shares		Price		Accepted		Accepted
Transaction	Sold		Per Share		Bid		Bid
March 8, 2012	1,926	$	147.48	$	165.78	$	141.93
April 5, 2012	4,233	$	152.56	$	179.96	$	145.00

Although the Company’s common stock is not listed with a national securities exchange, it trades sporadically on the Over-the-Counter Bulletin Board System under the symbol CNND or CNND.OB. The following table sets forth a summary of information about these trades. Due to the limited number of transactions, the quarterly high, low and weighted average bid/ask prices may not be indicative of the actual market value of the Company's stock.

The OTC Bulletin Board^® (OTCBB) is a regulated quotation service that displays real-time quotes, last-sale prices, and volume information in over-the-counter (OTC) equity securities. An OTC equity security generally is any equity that is not listed or traded on NASDAQ^® or a national securities exchange. The OTCBB is a quotation medium for subscribing members, not an issuer listing service, and should not be confused with The NASDAQ Stock Market^SM.  Investors must contact a broker/dealer to trade OTCBB securities. Investors do not have direct access to the OTCBB service. The Securities and Exchange Commission's (SEC's) Order-Handling Rules which apply to NASDAQ-listed securities do not apply to OTCBB securities.  The OTCBB market quotations set forth below reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.

	Number of		Quarterly		Quarterly		Quarterly
	Shares		Average		High		Low
Period	Transacted		Sales Price		Sales Price		Sales Price
1st Quarter, 2012	5,603	$	93.56	$	105.00	$	87.50

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Item 6.  Exhibits

	Exhibit	Where exhibit may be found (incorporated by reference to the extent not filed herewith):
(2.1)	Stock purchase Agreement, dated September 6, 2007, by and among Canandaigua National Corporation, Genesee Valley Trust Company	Filed as Exhibit 2.1 to Form 10-Q for the period ended June 30, 2010*
(2.2)	Asset Purchase Agreement, dated December 22, 2008, by and among The Canandaigua National Bank and Trust Company, Greentree Capital Management, LLC, Peter J Gaess, and T.C. Lewis	Filed as Exhibit 2.2 to Form 10-Q for the period ended June 30, 2010*
(2.3)	Amendment to Asset Purchase Agreement, dated December 31, 2008, by and among The Canandaigua National Bank and Trust Company, Greentree Capital Management, LLC, Peter J. Gaess, and T.C. Lewis	Filed as Exhibit 2.3 to Form 10-Q for the period ended June 30, 2010*
(3.i)	Certificate of Incorporation of the Registrant, as amended	Filed as Exhibit 3.i to Form 10-Q for the period ended March 31, 2011
(3.ii.)	By-laws of the Registrant, as amended	Filed as Exhibit 3.ii to Form 10-Q for the period ended March 31, 2011
(10.10)	Canandaigua National Corporation Omnibus Incentive Plan, as amended	Filed Herewith
(11)	Calculations of Basic Earnings Per Share and Diluted Earnings Per Share	Note 8 to the Condensed Consolidated Financial Statements
(31.1)	Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002	Filed Herewith
(31.2)	Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002	Filed Herewith
(32)	Certification of Chief Executive Officer and Chief Financial Officer under 18 U.S.C. Section 1350 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed Herewith
(101)**	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed consolidated Statements of Condition as of March 31, 2012 and December 31, 2011; (ii) condensed Consolidated Statements of Income for the three months ended March 31, 2012 and 2011; (iii) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2012 and 2011; (iv) condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2012 and 2011; (v) condensed Consolidated Statements of Changes in shareholders’ Equity for the three months ended March 31, 2012 and 2011; and, (vi) Notes to unaudited Condensed Consolidated Financial Statements. .
	Notes
	*Certain portions of these agreements have been granted confidential treatment by the Securities and Exchange Commission. Confidential information is omitted from these agreements and filed separately with the Commission
	** Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 and 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections

35

SIGNATURES

CANANDAIGUA NATIONAL CORPORATION AND SUBSIDIARIES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CANANDAIGUA NATIONAL CORPORATION
	(Registrant)
May 7, 2012	/s/ George W. Hamlin, IV
Date	George W. Hamlin, IV
	Chairman and Chief Executive Officer
May 7, 2012	/s/ Lawrence A. Heilbronner
Date	Lawrence A. Heilbronner
	Executive Vice President and Chief Financial Officer

36

EX-10

EXHIBIT 10.10

CANANDAIGUA NATIONAL CORPORATION

OMNIBUS INCENTIVE PLAN

1.

Purpose. The purposes of the Plan are: (a) to promote the interests of the Corporation, its Subsidiaries and its shareholders by strengthening the ability of the Corporation and its Subsidiaries to attract and retain highly competent officers and other key employees; and (b) to provide a means to encourage Stock ownership and proprietary interest in the Corporation. The Plan is intended to provide Participants with forms of long-term incentive compensation that are not subject to the deduction limitation rules prescribed under Code Section 162(m), and should be construed to the extent possible as providing for remuneration which is “performance-based compensation” within the meaning of Code Section 162(m) and the regulations promulgated thereunder.

2.

Definitions. Where the context of the Plan permits, words in the masculine gender shall include the feminine gender, the plural form of a word shall include the singular form, and the singular form of a word shall include the plural form. Unless the context clearly indicates otherwise, the following terms shall have the following meanings:

(a)

Award means the grant of incentive compensation under this Plan to a Participant.

(b)

Board means the board of directors of the Corporation.

(c)

Cause means the termination of a Participant’s employment due to: (a) the Participant’s misappropriation of funds or assets of the Corporation or a subsidiary for personal use; (b) the Participant willfully violating the Corporation’s policies or standards of business conduct as determined in good faith by the Board; or (c) any “cause” definition that appears in the Participant’s written employment agreement or the Participant’s Award(s).

(d)

Change in Control means:

(i)

there shall be consummated: (1) any consolidation or merger of the Corporation in which the Corporation is not the continuing or surviving corporation or pursuant to which any Shares are to be converted into cash, securities or other property, provided that the consolidation or merger is not with a corporation which was a direct or indirect wholly-owned subsidiary of the Corporation or a parent of the Corporation immediately before the consolidation or merger; or (2) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of the Corporation; or

(ii)

the shareholders of the Corporation approve any plan or proposal for the liquidation or dissolution of the Corporation; or

(iii)

any person (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) shall become the beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act), directly or indirectly, of 30% or more voting control of the Corporation’s then outstanding common stock, provided that such person shall not be a wholly-owned subsidiary of the Corporation immediately before it becomes such 30% beneficial owner of voting control; or

(iv)

individuals who constitute the Corporation’s Board of Directors on the date hereof (the “Incumbent Board’) cease for any reason to constitute at least a majority thereof, provided, however, that any person becoming a director subsequent to the date hereof whose election, or nomination for election, by the Corporation’s shareholders, was approved by a vote of at least 75% of the directors comprising the Incumbent Board (either by a specific vote or by approval of the proxy statement of the Corporation in which such person is named as a nominee for director without objection to such nomination) shall be, for purposes of this clause (iv), considered as though such person were a member of the Incumbent Board

Notwithstanding the foregoing, any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Corporation or one of its affiliates shall not constitute a Change in Control,

(e)

Code means the Internal Revenue Code of 1986, as amended.

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(f)

Committee means either (i) the Compensation Committee of the Board, or (ii) the full Board, unless the Board appoints another committee to administer the Plan.

(g)

Corporation means Canandaigua National Corporation, and any successor thereto.

(h)

Covered Employee means a covered employee within the meaning of Code Section 162(m), or any successor provision of the Code.

(i)

Disability means any medically determinable physical or mental impairment which prevents a Participant from engaging in any substantial gainful activity and which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months, as determined in good faith by the Committee.

(j)

Exchange Act means the Securities Exchange Act of 1934, as amended.

(k)

Fair Market Value as of any date and in respect of any share of Stock shall be determined in accordance with the following rules:

(i)

If the Stock is readily tradable on an established stock exchange or interdealer quotation system, then the “Fair Market Value” of the Stock shall be the closing sales price for the Stock on such exchange or system for the most recent market trading day on which a sale occurred preceding the date of determination, as reported on such exchange or system or such other source as the Committee deems reliable.

(ii)

If the Stock is not readily tradable on an established stock exchange or interdealer quotation system, then the “Fair Market Value” of the Stock shall be as determined in good faith by the Committee through any reasonable valuation method which satisfies the requirements of Section 409A of the Code.

(iii)

In no event shall the fair market value of any Stock be less than its par value.

(l)

Incentive Stock Option means a Stock Option designed to meet the requirements of Code Section 422, or any successor provision of the Code.

(m)

Nonqualified Stock Option means a Stock Option that is not an Incentive Stock Option and the transfer or exercise of which is subject to taxation under Code Section 83 and Treasury regulations issued thereunder.

(n)

Participant means an individual designated by the Committee as eligible to receive an Award under the Plan.

(o)

Performance Unit Award means a cash incentive subject to the satisfaction of long-term Performance Criteria and granted pursuant to section 10 below.

(p)

Performance Criteria means business criteria within the meaning of Code Section 162(m), including, but not limited to: revenue; revenue growth; earnings before interest and taxes; earnings before interest, taxes, depreciation and amortization; earnings per share; operating income; pre-or after-tax income; net operating profit after taxes; economic value added (or an equivalent metric); ratio of operating earnings to capital spending; cash flow (before or after dividends); cash-flow per share (before or after dividends); net earnings; net sales; sales growth; share price performance; return on assets or net assets; return on equity; return on capital (including return on total capital or return on invested capital); cash flow return on investment; total shareholder return; improvement in or attainment of expense levels; and improvement in or attainment of working capital levels. Any Performance Criteria may be used to measure the Corporation’s performance as a whole or any of the Corporation’s business units and may be measured relative to a peer group or index.

(q)

Performance Period means a period of at least one year and no more than five years, designated by the Committee.

(r)

Person means any individual, entity or group, including any “person” within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act.

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(s)

Phantom Stock means an award providing a Participant with the right to receive the value of a share of Stock at a date on or after vesting in accordance with the terms of such grant, and/or upon the attainment of Performance Criteria specified by the Committee in the Award, in accordance with section 9 below.

(t)

Plan means this Omnibus Incentive Plan.

(u)

Restricted Stock means Stock subject to a vesting condition specified by the Committee in an Award in accordance with section 9 below.

(v)

RSU means a restricted stock unit providing a Participant with the right to receive cash or Stock, at the discretion of the Committee, at a date on or after vesting in accordance with the terms of such grant and/or upon the attainment of Performance Criteria specified by the Committee in the Award in accordance with section 9 below.

(w)

SAR means a stock appreciation right granted pursuant to section 8 below.

(x)

Stock means a share of the common Voting Stock of the Corporation, provided that with respect to Stock related to a Stock Option or SAR intended to be exempt from Code Section 409A, Stock means a share of Voting Stock of the Corporation that on the date of grant of the Stock Option or SAR: (A) is common stock for purposes of Code Section 305; (B) has no preference as to distributions (other than distributions of Stock and distributions in liquidation); and (C) which is not subject to a mandatory repurchase obligation (other than a right of first refusal) or to a put or call right (other than a lapse restriction as defined in Treasury regulations issued under Code Section 83), if the stock price under the obligation or right is based on a measure other than the fair market value (disregarding lapse restrictions as defined in Treasury Regulation Section 1.83-3(i)) of the equity interest in the Corporation.

(y)

Stock Option means the right to acquire shares of Stock at a certain price that is granted pursuant to section 7 below. The term Stock Option includes both Incentive Stock Options and Nonqualified Stock Options.

(z)

Subsidiary means any corporation or entity of which the Corporation owns, directly or indirectly, at least 50% of the total voting power of all classes of stock entitled to vote or at least 50% of total value of all classes of stock.

(aa)

Voting Stock means the common stock of the Corporation with the general right to vote for the election of directors.

3.

Administration. The Plan will be administered by the Committee consisting of two or more directors of the Corporation as the Board may designate from time to time.  Each member of the Committee shall satisfy such requirements as:

(a)

the Securities and Exchange Commission has or may establish for directors acting under plans intended to qualify for exemption under Rule 16b3 or its successor under the Exchange Act;

(b)

any stock exchange on which Stock of the Corporation is traded has or may establish pursuant to its rule-making authority; and

(c)

the Internal Revenue Service has or may establish for outside directors acting under plans intended to qualify for exemption under Code Section 162(m).

The Committee shall have the discretionary authority to: (i) construe and interpret the Plan and any Awards granted thereunder; (ii) establish and amend rules for Plan administration; (iii) change the terms and conditions of Awards at or after grant (subject to the provisions of section 17 below); (iv) correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any Award granted under the Plan; (v) determine the eligible participants of the Corporation to whom, and the time or times at which, Awards shall be granted; (vi) determine the form of Awards and the number of shares of Stock to be subject to each award; (vii) prescribe the form of the Award agreements and any appropriate terms and conditions applicable to the Awards; (viii) make any amendments to such agreements or Awards; and (ix) make all other determinations which it deems necessary or advisable for the administration of the Plan; provided, however, that, notwithstanding any provision of the Plan to the contrary, with respect to an Award that constitutes deferred compensation intended to be exempt from or comply with Code Section

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409A, the Plan shall be interpreted and administered consistent with Code Section 409A exemption or compliance requirements.

Awards under the Plan may be made subject to the satisfaction of one or more Performance Criteria. Performance Criteria shall be established by the Committee for a Participant (or group of Participants) no later than ninety (90) days after the commencement of each Performance Period (or the date on which 25% of the Performance Period has elapsed, if earlier). The Committee may select one or more Performance Criteria and may apply those Performance Criteria on a corporate-wide or division/business segment basis.  Notwithstanding the above or any other provision of the Plan, the Committee may not increase the amount of compensation payable to a Participant upon the satisfaction of Performance Criteria.

The Committee or the Board may authorize one or more officers of the Corporation to select employees to participate in the Plan and to determine the number and type of Awards to be granted to such Participants, except with respect to: Awards to Participants subject to Section 16 of the Exchange Act; Awards to non-employee directors of the Corporation; and Awards to officers who are, or who are reasonably expected to be, Covered Employees. Any reference in the Plan to the Committee shall include such officer or officers acting pursuant to the authority delegated by the Committee or the Board.

The determinations of the Committee shall be made in accordance with its judgment as to the best interests of the Corporation and its shareholders and in accordance with the purposes of the Plan. Any determination of the Committee under the Plan may be made without notice or meeting of the Committee, if it is in writing and signed by all the Committee members.

Notwithstanding the above, no member of the Committee shall interpret the Plan with respect to, or exercise any discretion, act on, or decide, any matter relating to himself or any of his rights or benefits under the Plan.

4.

Eligibility to Participate. Participants may consist of employees and non-employee directors of the Corporation and its Subsidiaries; provided, however, the following individuals shall be excluded from participation in the Plan: (a) contract laborers; (b) employees whose base wage or base salary is not processed for payment by the payroll department of the Corporation or any Subsidiary; and (c) any individual performing services under an independent contractor or consultant agreement, a purchase order, a supplier agreement or any other agreement that the Corporation enters into for service. Designation of a Participant in any year shall not require the Committee to designate that person to receive an Award in any other year or to receive the same type or amount of Award as granted to the Participant in any other year or as granted to any other Participant in any year. The Committee shall consider all factors that it deems relevant in selecting Participants and in determining the type and amount of their respective Awards.

5.

Shares Available Under the Plan and for Awards. There is hereby reserved for issuance under the Plan an aggregate of 24,000 shares of Stock. Stock covered by an Award granted under the Plan shall not be counted as used unless and until actually issued and delivered to a Participant. Accordingly, if there is (a) a lapse, expiration, termination or cancellation of any Stock Option or other Award outstanding under this Plan prior to the issuance of Stock thereunder, or (b) a forfeiture of any shares of Restricted Stock or other Stock subject to an Award prior to vesting, then the Stock subject to such Awards shall be added to the Stock available for Awards under the Plan. In addition, any Stock covered by an SAR shall be counted as used only to the extent Stock is actually issued to the Participant upon exercise of the right. Finally, any Stock exchanged by a Participant as full or partial payment of the exercise price under any Stock Option exercised under the Plan, any Stock retained by the Corporation to comply with applicable income tax withholding requirements, and any Stock covered by an Award which is settled in cash, shall be added to the Stock available for Awards under the Plan.

All Stock issued under the Plan may be either authorized and unissued Stock or issued Stock reacquired by the Corporation. The maximum number of shares of Stock that may be issued under the Plan through Incentive Stock Options is 24,000; provided, however, notwithstanding a Stock Option’s designation, to the extent that Incentive Stock Options are exercisable for the first time by the Participant during any calendar year with respect to Stock whose aggregate Fair Market Value exceeds $100,000, such Stock Options shall be treated as Nonqualified Stock Options.

The Stock reserved for issuance and the other limitations set forth above shall be subject to adjustment in accordance with section 12 hereto.

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6.

Types of Awards, Payments, and Limitations. Awards shall consist of Stock Options, SARs, Restricted Stock, Phantom Stock, Performance Unit Awards and RSUs, all as described herein. Payment of Awards may be in the form of cash, Stock, other Awards or combinations thereof as the Committee shall determine, and with the expectation that any Award of Stock shall be styled to preserve the nature of the Award and such restrictions as it may impose. Consistent with Code Section 409A restrictions and subject to the provisions of sections 17 and 19 hereto, the Committee, either at the time of grant or by subsequent amendment, may require or permit Participants to elect to defer the issuance of Stock or the settlement of Awards in cash under such rules and procedures as the Committee may establish under the Plan.

The Committee may provide that any Awards under the Plan earn dividends or dividend equivalents, and interest on such dividends or dividend equivalents, other than Stock Options and SARs intended to be exempt from Code Section 409A. Such dividends or dividend equivalents shall be credited to a Participant’s Plan account, and are subject to the same vesting or Performance Criteria as the underlying Award.  Dividends or dividend equivalents shall be subject to such restrictions and conditions as the Committee may establish, including reinvestment in additional Stock or Stock equivalents.

Each Award shall be evidenced by an agreement that sets forth the terms, conditions and limitations of such Award. Such terms may include, but are not limited to, the term of the Award, the provisions applicable in the event the Participant’s employment terminates, and the Corporation’s authority to unilaterally or bilaterally amend, modify, suspend, cancel or rescind any Award including without limitation the ability to amend such Awards to comply with changes in applicable law. An Award may also be subject to other provisions (whether or not applicable to similar Awards granted to other Participants) as the Committee determines appropriate, including provisions intended to comply with federal or state tax or securities laws, stock exchange requirements, understandings or conditions as to the Participant’s employment, requirements or inducements for continued ownership of Stock after exercise or vesting of Awards, or forfeiture of Awards in the event of termination of employment shortly after exercise or vesting, or breach of noncompetition or confidentiality agreements following termination of employment.  The Committee need not require the execution of any such agreement by a Participant.  The date of the Award or the date specified in the Award shall be the grant date of the Award for all purposes.

The Committee may make retroactive adjustments to, and the Participant shall reimburse to the Corporation any cash or equity based incentive compensation paid to the Participant, where such compensation was predicated upon achieving financial results that were substantially the subject of a restatement and, as a result of the restatement, it is determined that the Participant otherwise would not have been paid such compensation, regardless of whether or not the restatement resulted from the Participant’s misconduct. In each such instance, the Corporation will, to the extent practicable, seek to recover the amount by which the Participant’s cash or equity based incentive compensation for the relevant period exceeded the lower payment that would have been made based on the restated financial results.

Furthermore, the Corporation will, to the extent permitted by governing law, require reimbursement of any cash or equity based incentive compensation paid to any named executive officer (for purposes of this policy “named executive officers” has the meaning given that term in Item 402(a)(3) of Regulation S-K under the Securities Exchange Act of 1934) where: (i) the payment was predicated upon the achievement of certain financial results that were subsequently the subject of a substantial restatement, and (ii) in the Committee’s view the officer engaged in fraud or misconduct that caused or partially caused the need for the substantial restatement. In each instance described above, the Corporation will, to the extent practicable, seek to recover the described cash or equity based incentive compensation for the relevant period, plus a reasonable rate of interest.

Measurement of the attainment of Performance Criteria may exclude, if the Award agreement so provides, impact of charges for restructurings, discontinued operations, extraordinary items and other unusual or non-recurring items, and the cumulative effects of tax or accounting changes, each as defined by generally accepted accounting principles and as identified in the financial statements, in the notes to the financial statements, in the management’s discussion and analysis section of the financial statements, or in other Securities and Exchange Commission filings.

Consistent with Code Section 409A restrictions, an Award may: (i) require a Participant to have amounts or Stock that otherwise would be paid or delivered to the Participant as a result of the exercise or settlement of an Award under the Plan credited to a deferred compensation or stock unit account established for the Participant by the Committee on the Corporation’s books of account; or (ii) permit a Participant to defer the receipt of payments of Awards pursuant to such rules, procedures or programs as may be established for purposes of this Plan.

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7.

Stock Options. Stock Options may be granted to Participants at any time as determined by the Committee; provided, however, that Incentive Stock Options shall be granted only to an employee of the Corporation or a Subsidiary. The Committee shall determine the number of shares subject to each Stock Option and whether the Stock Option is an Incentive Stock Option. The exercise price for each Stock Option shall be determined by the Committee but shall not be less than 100% of the Fair Market Value of the Stock on the date the Stock Option is granted unless the Stock Option is a substitute or assumed Stock Option as described in section 13 hereto. Subject to the provisions of this section 7, each Stock Option shall be exercisable at such time, shall expire at such time, and shall be subject to such other terms and conditions, as the Committee shall determine and as provided in the Award; provided, however, that no Stock Option shall be exercisable more than 10 years from the date of grant or, in the case of an Incentive Stock Option granted to an employee/shareholder described in Treasury Regulation Section 1.442-2(f), 5 years from the date of grant.

An Incentive Stock Option shall be exercisable following a Participant’s termination of employment only as follows:

(a)

Upon termination of the Participant’s employment for any reason other than death or Disability, any vested option that was exercisable immediately preceding termination may be exercised at any time prior to the earlier of the expiration date of the ISO or the expiration of three months after the date of such termination.

(b)

If the employment of a Participant terminates by reason of death or Disability (as determined by the Committee), any ISO may be exercised by the Participant or, in the event of the Participant’s death, by the Participant’s personal representative any time prior to the earlier of the expiration date of the ISO or the expiration of one year after the date of termination, but only if, and to the extent that, the Participant was entitled to exercise the ISO at the date of such termination.

Any Incentive Stock Option that fails to meet the requirements of Section 422 of the Code shall be treated as a Nonqualified Stock Option.

In no event shall the Committee cancel any outstanding Stock Option with an exercise price greater than the then current Fair Market Value of the Stock for the purpose of reissuing any other Award to the Participant at a lower exercise price, or reduce the exercise price of an outstanding Stock Option without shareholder approval. Reload options are not permitted.  

The exercise price, upon exercise of any Stock Option, shall be payable to the Corporation in full by cash payment or its equivalent; provided, however, that with the Committee’s prior written approval, the exercise price may be payable to the Corporation by: (a) tendering previously acquired Stock purchased on the open market having a Fair Market Value at the time of exercise equal to the exercise price; (b) to the extent permitted by applicable law, delivery of a properly executed exercise notice, together with irrevocable instructions to a broker to promptly deliver to the Corporation the amount of sale proceeds from the Stock Option shares or loan proceeds to pay the exercise price and any withholding taxes due to the Corporation; and (c) such other methods of payment as the Committee, in its discretion, deems appropriate.

8.

Stock Appreciation Rights. SARs may be granted to Participants at any time as determined by the Committee. The grant price of any SAR shall be equal to the Fair Market Value of the Stock on the date of its grant unless the SARs are substitute or assumed SARs as described in section 13 hereto. An SAR may be exercised upon such terms and conditions and for the term the Committee in its sole discretion determines. Upon exercise of an SAR, the Participant shall be entitled to receive payment from the Corporation in an amount determined by multiplying (a) the difference between the Fair Market Value of a share of Stock on the date of exercise and the grant price of the SAR by (b) the number of shares with respect to which the SAR is exercised.  The payment may be made in cash or Stock, at the discretion of the Committee. In no event shall the Committee cancel any outstanding SAR with a grant price greater than the then current Fair Market Value of the Stock for the purpose of reissuing any other Award to the Participant at a lower grant price, or reduce the grant price of an outstanding SAR without shareholder approval.

9.

Restricted Stock, RSUs, and Phantom Stock. Restricted Stock, RSUs, and Phantom Stock may be awarded under such terms and conditions as shall be established by the Committee. Restricted Stock, RSUs, and Phantom Stock shall be subject to such restrictions as the Committee determines, including, without limitation, any of the following:

(a)

a prohibition against sale, assignment, transfer, pledge, hypothecation or other encumbrance for a specified period;

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(b)

a requirement that the holder forfeit (or in the case of Stock sold to the Participant, resell to the Corporation at cost) such Stock, RSUs, or Phantom Stock in the event of termination of employment during the period of restriction; and

(c)

the attainment of Performance Criteria.

All restrictions shall expire at such times as the Award shall specify.  Provided the Award has not previously been forfeited, RSUs and Phantom Stock shall be paid or settled within sixty (60) days after the Award is deemed vested, but in no event longer than the maximum time period permitted under Code Section 409A to qualify as a short-term deferral.

10.

Performance Unit Awards. The Committee shall designate the Participants to whom Performance Unit Awards are to be awarded and determine the amount of the Award and the terms and conditions of each such Award; provided the Performance Period will not be less than 12 months.  Each Performance Unit Award shall entitle the Participant to a payment in cash upon the attainment of Performance Criteria and other terms and conditions specified in the Award; provided, however, that the Committee may, in its discretion, substitute Stock for a cash payment otherwise required to be made to a Participant pursuant to a Performance Unit Award if such Stock has a Fair Market Value equal to the cash payment on the payment date.  Before payment of a Performance Unit Award, the Committee shall certify in writing that the Performance Criteria has been satisfied.  

Notwithstanding the satisfaction of any Performance Criteria, the amount to be paid under a Performance Unit Award may be adjusted by the Committee, in its discretion, on the basis of such further consideration as the Committee in its sole discretion shall determine. However, the Committee may not, in any event, increase the amount earned under Performance Unit Awards upon satisfaction of any Performance Criteria by any Participant who is a Covered Employee.

11.

Change in Control.  

(a)

Except as otherwise determined by the Committee at the time of grant of an Award and as provided in an Award agreement and, with respect to an Award that constitutes deferred compensation subject to Code Section 409A, to the extent not inconsistent with Code Section 409A restrictions regarding acceleration of payment upon a change in control event or upon termination and liquidation of the Plan, upon a Change in Control and subject to subsection (b) below: all outstanding Stock Options and SARs shall become vested and exercisable; all restrictions on Restricted Stock, RSUs, and Phantom Stock shall lapse; all Performance Criteria shall be deemed achieved and all other terms and conditions met; all Performance Unit Awards, RSUs, and Phantom Stock shall be paid out as promptly as practicable and in no event later than sixty (60) days following the occurrence of the Change in Control.  In addition, upon the approval of a plan of complete liquidation or dissolution of the Corporation, the Plan shall be terminated and liquidated.

(b)

Notwithstanding subsection 11(a), the Committee may, in its sole discretion, upon a Change in Control: (i) provide that outstanding Awards shall be assumed, or substantially equivalent stock and stock-based awards shall be substituted, by the acquiring or succeeding corporation; (ii) upon written notice to the Participants, provide that all unexercised Stock Options will terminate immediately prior to the consummation of the transaction unless exercised by the Participant within a specified period following the date of such notice; or (iii) in the event of a Change in Control under the terms of which holders of Voting Stock will receive upon consummation thereof a cash payment for each share surrendered in the Change in Control, make or provide for a cash payment to the Participants equal to the difference between (y) the Change in Control Price times the number of shares of Stock subject to such outstanding Stock Options and SAR (to the extent then exercisable at prices not in excess of the Change in Control Price) and (z) the aggregate exercise price of all such outstanding Stock Options and SARs, in exchange for the termination of such Stock Options and SARs.  In the event Stock Options and SARs will terminate upon the consummation of the transaction as provided in clause (ii), each Participant shall be permitted, within a specified period determined by the Committee, to exercise all non-vested Stock Options and SARs, subject to the consummation of the Change in Control.  At the option of the Committee in its sole discretion, any Award which is not “in the money” as of the date of consummation of the Change in Control may be canceled automatically without any action of the Participant and without consideration.

(c)

Notwithstanding the foregoing, if the Award constitutes deferred compensation subject to Code Section 409A, the definition of Change in Control must also constitute an event that is a change in ownership or

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effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company within the meaning of Code Section 409A.

12.

Adjustment Provisions.

(a)

In the event of any change affecting the number, class, market price or terms of the Stock by reason of share dividend, share split, recapitalization, reorganization, merger, consolidation, spin-off, disaffiliation of a subsidiary, combination of Stock, exchange of Stock, Stock rights offering, or other similar event, or any distribution to the holders of Stock other than a regular cash dividend, the Committee shall equitably substitute or adjust the number or class of Stock which may be issued under the Plan in the aggregate or to any one Participant in any calendar year and the number, class, price or terms of shares of Stock subject to outstanding Awards granted under the Plan; provided, however, that any equitable adjustment shall be consistent with such change to prevent substantial dilution or enlargement of the rights granted to, or available for, Participants in the Plan.

(b)

In the event of a Change in Control of the Corporation which results in the outstanding Stock of the Corporation being converted into or exchanged for different securities, cash or other property, or any combination thereof, there shall be substituted, on an equitable basis, for each share of Stock then subject to an Award granted under the Plan, the number and kind of shares of stock, other securities, cash or other property to which holders of Stock will be entitled pursuant to the transaction; provided, however, that in the event of a Change in Control and irrespective of whether an Award is being assumed, substituted or terminated in connection with the transaction, the vesting and exercisability of each outstanding Award shall accelerate in accordance with section 11(a) effective immediately prior to the Change in Control.

(c)

Notwithstanding the above or any other provision of the Plan, no substitution or adjustment shall be made pursuant to this section 12 relating to an Award that is a Stock Option or SAR intended to be exempt from Code Section 409A unless the substitution or modification complies with the restrictions on modifications to Stock Options and SARs exempt for Code Section 409A, and no substitution or adjustment shall be made to an Award that is an Incentive Stock Option unless the substitution or modification complies with any additional restrictions for Incentive Stock Options.

13.

Substitution and Assumption of Awards. The Board or Committee may authorize the issuance of Awards under this Plan in connection with the assumption of, or substitution for, outstanding Awards previously granted to individuals who become employees of the Corporation or any Subsidiary as a result of any merger, consolidation, acquisition of property or stock, or reorganization, upon such terms and conditions as the Committee may deem appropriate, provided, however, that in the case of a Stock Option or SAR intended to be exempt from Code Section 409A: (i) the excess of the aggregate Fair Market Value of the shares of Stock subject to the new or assumed Award after the assumption or substitution over the aggregate exercise or grant price of such shares must not be greater than the excess of the aggregate Fair Market Value of the shares of Stock subject to the new or assumed Award immediately before the assumption or substitution over the exercise or grant price of such shares; (ii) on a share-by-share comparison, the ratio of the exercise or grant price to the Fair Market Value of the shares of Stock subject to the Award immediately after the change in the Award or issuance of a new Award must not be more favorable to the Participant than the ratio of the exercise or grant price to the Fair Market Value of the shares of Stock subject to the old award (or portion thereof) immediately before the change in the Award or issuance of a new Award; the new or assumed Award must contain all of the terms of the old Award, except to the extent those terms are rendered inoperative by reason of the merger, consolidation, acquisition, or reorganization; and the new or assumed Award must not give the Participant additional benefits that he did not have under the old award.

Any substitute Awards granted under the Plan shall not count against the Stock limitations set forth in section 5 hereto, to the extent permitted by the corporate governance standards and rules of any stock exchange upon which stock of the Corporation is traded.

14.

Nontransferability. Each Award granted under the Plan shall not be transferable other than by will or the laws of descent and distribution, and each Stock Option and SAR shall be exercisable during the Participant’s lifetime only by the Participant or, in the event of Disability, by the Participant’s personal representative (on behalf of the Participant). In the event of the death of a Participant, exercise of any Award or payment with respect to any Award shall be made only by or to the beneficiary, executor or administrator of the estate of the deceased Participant or the person or persons to whom the deceased Participant’s rights under the Award shall pass by will or the laws of descent and distribution.

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15.

Taxes. The Corporation has the power and the right to deduct or withhold, or require a Participant to remit to the Corporation, an amount sufficient to satisfy Federal, state or local taxes (including the Participant’s FICA obligation) required by law to be withheld with respect to any taxable event arising as a result of the Plan.  As a condition of the grant, vesting, exercise or settlement of an Award, the Participant shall make such arrangements as the Committee may require, in its discretion, to satisfy any applicable tax withholding obligations.

In the case of an employee and in the absence of any other arrangement, the employee shall be deemed to have directed the Corporation to withhold or collect from his or her compensation an amount sufficient to satisfy such tax obligations from the next payroll payment otherwise payable after the date of any taxable event arising as a result of the Plan.

In the case of Participant other than an employee (or in the case of an employee where the next payroll payment is not sufficient to satisfy such tax obligations, with respect to any remaining tax obligations), in the absence of any other arrangement and to the extent permitted under applicable laws, the Participant shall be deemed to have elected to have the Corporation withhold from the shares to be issued upon the settlement of an Award that number of shares having a Fair Market Value determined as of the applicable tax date equal to the amount required to be withheld.

If permitted by the Committee, in its discretion, a Participant may satisfy his or her tax withholding obligations by surrendering to the Corporation shares of Voting Stock that have a Fair Market Value determined as of the applicable tax date equal to the amount required to be withheld.  In the case of shares previously acquired from the Corporation that are surrendered under this section, such shares must have been owned by the Participant for more than six (6) months on the date of surrender (or such other period of time as is required for the Corporation to avoid adverse accounting charges).

Any election or deemed election by a Participant to have shares withheld to satisfy tax withholding obligations shall be irrevocable as to the particular shares as to which the election is made and shall be subject to the consent or disapproval of the Committee.  Any election by a Participant to surrender shares to satisfy his or her tax withholding obligations must be made on or prior to the applicable tax date.

16.

Duration of the Plan. No Award shall be made under the Plan more than 10 years after the date the Plan is adopted by the Board or approved by the shareholders of the Corporation, whichever is earlier.

17.

Amendment and Termination. The Board or Committee may amend the Plan from time to time or terminate the Plan at any time; provided, however, (i) that no provision of the Plan requiring shareholder approval shall be amended to eliminate such requirement; and (ii) no amendment may reduce the amount of the Award or adversely affect the rights of the Participant under such Award without the Participant’s consent.  Notwithstanding the foregoing, consistent with Code Section 409A restrictions, the Committee may require an Award be deferred pursuant to section 6 hereto, without a Participant’s consent; and may amend or terminate an Award to comply with changes in law without a Participant’s consent.

The Corporation shall obtain shareholder approval of any Plan amendment to the extent necessary to comply with applicable laws, regulations, or stock exchange rules.

18.

Delayed Payments.

(a)

Notwithstanding any provision to the contrary in the Plan or an Award agreement, Award payment(s) to a Participant shall be delayed to the extent that the Committee reasonably anticipates that, if the payment(s) were made as scheduled, a tax deduction for such payment(s) would be barred by Code Section 162(m).  In such case, the payment(s) shall be made either: (i) during the calendar year in which the Committee reasonably anticipates that, if the payment(s) is made during such year, the tax deduction for such payment(s) will not be barred under Code Section 162(m); or, (ii) if the Award constitutes deferred compensation subject to Code Section 409A, during the period beginning on the date that is six months after the Participant’s separation from service (as defined in Code Section 409A) and ending on the later of the last day of the calendar year in which such date occurs or the 15th day of the third month following such calendar year.

(b)

Notwithstanding any provision to the contrary in an Award agreement, if an Award constitutes deferred compensation subject to Code Section 409A, payment(s) of the Award to the Participant on account of his separation of service (as defined in Code Section 409A) shall not occur before the date that is six months after the date of his separation from service (or, if earlier, the date of his death).

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19.

Other Provisions.

(a)

In the event any Award under this Plan is granted to an employee who is employed or providing services outside the United States and who is not compensated from a payroll maintained in the United States, the Committee may, in its sole discretion: (i) modify the provisions of the Plan as they pertain to such individuals to comply with applicable law, regulation or accounting rules consistent with the purposes of the Plan; and (ii) cause the Corporation to enter into an agreement with any local subsidiary pursuant to which such subsidiary will reimburse the Corporation for the cost of such equity incentives.

(b)

Neither the Plan nor any Award shall confer upon a Participant any right with respect to continuing the Participant’s employment with the Corporation; nor interfere in any way with the Participant’s right or the Corporation’s right to terminate such relationship at any time, with or without cause, to the extent permitted by applicable laws and any enforceable agreement between the employee and the Corporation.

(c)

No fractional shares of Stock shall be issued or delivered pursuant to the Plan or any Award, and the Committee, in its discretion, shall determine whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional shares of Stock, or whether such fractional shares or any rights thereto shall be canceled, terminated, or otherwise eliminated.

(d)

In the event any provision of the Plan shall be held to be illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if such illegal or invalid provisions had never been contained in the Plan.

(e)

Payments and other benefits received by a Participant under an Award made pursuant to the Plan generally shall not be deemed a part of a Participant’s compensation for purposes of determining the Participant’s benefits under any other employee benefit plans or arrangements provided by the Corporation or a subsidiary, unless expressly provided under such plan or arrangement. The Committee shall administer, construe, interpret, and exercise discretion under the Plan and each Award in a manner that is consistent and in compliance with a reasonable, good faith interpretation of all applicable laws, and that avoids (to the extent practicable) the classification of any Award as deferred compensation subject to Code Section 409A or, alternatively, complies with Code Section 409A requirements, as determined by the Committee.

(f)

A Participant shall not possess any rights of a shareholder with respect to the Stock covered by any Award until the Participant becomes the record holder of such Stock, provided that a Participant may have certain shareholder rights with respect to Restricted Stock (except the right to receive dividends on unvested Stock) as set forth in the Award.

(g)

Upon termination of a Participant’s employment with the Corporation for Cause, any and all Awards held by such Participant shall immediately terminate in their entirety upon first notification to the Participant of termination of the Participant’s employment.  If a Participant’s employment with the Corporation is suspended pending an investigation of whether the Participant shall be terminated for Cause, all the Participant’s rights under any Award likewise shall be suspended during the investigation period and the Participant shall have no right to exercise any Award.  If after Participant’s termination of employment without Cause, the Committee becomes aware of facts that, if it had been aware of at the time of termination, could have permitted the Corporation to terminate Participant’s employment for Cause, then any and all Awards held by such Participant shall be immediately and automatically terminated and forfeited at the time of such determination of Cause by the Committee.  The Committee shall have authority to effect such procedures and take such actions as are necessary to carry out the legal intent of this section, including such procedures and actions as are required to cause the Participant to return to the Corporation Stock that was acquired or vested under the Award within six months of the events giving rise to the for-Cause termination of the Participant’s employment and, if such Stock has been transferred by the Participant, to remit to the Corporation the value of such transferred Shares.

20.

Governing Law, Venue.   The Plan and any actions taken in connection herewith shall be governed by and construed in accordance with the laws of the state of New York without regard to any state’s conflict of laws principles. Any legal action related to this Plan shall be brought only in a federal or state court located in Ontario County, New York.

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EX-31

Exhibit 31.1
Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002
CERTIFICATIONS
I, George W. Hamlin, IV, certify that:
	1.	I have reviewed this quarterly report on Form 10-Q of Canandaigua National Corporation;
	2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
	3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
	4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
		(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
		(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
		(c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
		(d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
	5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):
		(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
		(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

May 7, 2012	/s/ George W. Hamlin, IV
Date	George W. Hamlin, IV, Chairman and Chief
	Executive Officer

EX-31

Exhibit 31.2
Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002
CERTIFICATIONS
I, Lawrence A. Heilbronner, certify that:
	1.	I have reviewed this quarterly report on Form 10-Q of Canandaigua National Corporation;
	2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
	3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
	4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
		(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
		(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
		(c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
		(d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
	5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):
		(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
		(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

May 7, 2012	/s/ Lawrence A. Heilbronner
Date	Lawrence A. Heilbronner, Executive Vice President and
	Chief Financial Officer

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO 18 U.S.C.

SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

George W. Hamlin, IV, Chairman and Chief Executive Officer and Lawrence A. Heilbronner, Executive Vice President and Chief Financial Officer, of Canandaigua National Corporation (the “Company”), each certify in his capacity as an officer of the Company that he has reviewed the Quarterly Report of the Company on Form 10-Q for the three-months ended March 31, 2012 (the “Report”), and that to the best of his knowledge:

(1)	the Report fully complies with the requirements of Section 13(a) of 15(d) of the Securities Exchange Act of 1934; and
(2)	the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of Company.
The purpose of this statement is solely to comply with Title 18, Chapter 63, Section 1350 of the United States Code, as amended by Section 906 of the Sarbanes-Oxley Act of 2002.

May 7, 2012

/s/ George W. Hamlin, IV	/s/ Lawrence A. Heilbronner
George W. Hamlin, IV	Lawrence A. Heilbronner
Chairman and Chief Executive Officer	Executive Vice President and Chief Financial Officer

XML

Capital Changes (Details)	Mar. 31, 2012	Dec. 31, 2011
Capital Changes [Abstract]
Preferred stock, authorized shares	4,000,000
Common stock, authorized	16,000,000	16,000,000

XML

Loans and Allowances for Loan Losses 1 (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011	Dec. 31, 2010
Major Classifications of loans [Line Items]
Total loans	$ 1,352,055		$ 1,284,887
Plus - Net deferred loan costs	9,054		7,634
Loans and Leases Receivable, Allowance	(16,841)		(16,095)
Loans - net	1,344,268		1,276,426
Balance at the beginning of period	16,095	15,635
Loans charged off	(710)	(705)
Recoveries of loans charged off	306	230
Provision for loan losses	1,150	750
Balance at the end of period	16,841	15,910
Commercial and industrial [Member]
Major Classifications of loans [Line Items]
Total loans	198,118		198,744
Loans and Leases Receivable, Allowance	(4,878)	(5,876)	(6,393)	(6,364)
Loans charged off	191	155
Recoveries of loans charged off	38	15
Provision for loan losses	(1,362)	(348)
Commercial mortgages
Major Classifications of loans [Line Items]
Total loans	493,457		467,413
Loans and Leases Receivable, Allowance	(1,282)	(1,671)	(994)	(1,371)
Loans charged off	0	0
Recoveries of loans charged off	2	0
Provision for loan losses	286	300
Residential Mortgages - first position
Major Classifications of loans [Line Items]
Total loans	262,770		256,173
Loans and Leases Receivable, Allowance	(1,907)	(1,666)	(1,786)	(1,304)
Loans charged off	75	0
Recoveries of loans charged off	6	0
Provision for loan losses	190	362
Residential Mortgages - Second position
Major Classifications of loans [Line Items]
Total loans	100,368		101,877
Loans and Leases Receivable, Allowance	(534)	(587)	(521)	(563)
Loans charged off	3	0
Recoveries of loans charged off	2	1
Provision for loan losses	14	23
Consumer - Indirect
Major Classifications of loans [Line Items]
Total loans	261,619		227,541
Loans and Leases Receivable, Allowance	(5,861)	(4,141)	(4,839)	(4,196)
Loans charged off	283	402
Recoveries of loans charged off	175	141
Provision for loan losses	1,130	206
Consumer Other
Major Classifications of loans [Line Items]
Total loans	24,087		25,583
Loans and Leases Receivable, Allowance	(1,222)	(811)	(916)	(1,155)
Loans charged off	158	148
Recoveries of loans charged off	83	73
Provision for loan losses	381	(269)
Loans-held-for-sale
Major Classifications of loans [Line Items]
Total loans	11,636		7,556
Loans and Leases Receivable, Allowance	0	0	0	0
Loans charged off	0	0
Recoveries of loans charged off	0	0
Provision for loan losses	0	0
Unallocated
Major Classifications of loans [Line Items]
Loans and Leases Receivable, Allowance	(1,157)	(1,158)	(646)	(682)
Loans charged off	0	0
Recoveries of loans charged off	0	0
Provision for loan losses	$ 511	$ 476

XML

Fair Values of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2012

Fair Values of Financial Instruments [Abstract]

Fair Value, by Balance Sheet Grouping [Table Text Block]

						March 31, 2012				December 31, 2011
				Fair Value	Carrying		Fair		Carrying		Fair
Financial Assets:				Hierarchy		Amount		Value		Amount		Value
	Cash and equivalents			1	$	105,573		105,573		126,740		126,740
	Securities, available-for-sale			1, 2, 3	$	107,330		107,330		114,258		114,258
	Securities, held-to-maturity			2	$	165,464		170,109		167,225		172,517
	FHLB stock and Federal Reserve Bank stock			3	$	2,656		2,656		2,656		2,656
	Loans-net			3	$	1,344,268		1,408,255		1,276,426		1,308,531
	Loan servicing assets			3	$	2,600		3,280		2,489		3,244
Financial Liabilities:
	Deposits:
		Demand, savings and
			money market accounts	3	$	1,188,421		1,188,421		1,148,406		1,148,406
		Time deposits		3	$	395,104		385,858		398,204		393,583
	Borrowings			2	$	-		-		-		-
	Junior subordinated debentures			2	$	51,547		52,299		51,547		52,185
Other financial instruments:
	Interest rate swap agreements			2	$	(3,313)		(3,313)		(4,415)		(4,415)
	Letters of credit			2	$	(217)		(217)		(233)		(233)

						March 31, 2012				December 31, 2011
				Fair Value	Carrying		Fair		Carrying		Fair
Financial Assets:				Hierarchy		Amount		Value		Amount		Value
	Cash and equivalents			1	$	105,573		105,573		126,740		126,740
	Securities, available-for-sale			1, 2, 3	$	107,330		107,330		114,258		114,258
	Securities, held-to-maturity			2	$	165,464		170,109		167,225		172,517
	FHLB stock and Federal Reserve Bank stock			3	$	2,656		2,656		2,656		2,656
	Loans-net			3	$	1,344,268		1,408,255		1,276,426		1,308,531
	Loan servicing assets			3	$	2,600		3,280		2,489		3,244
Financial Liabilities:
	Deposits:
		Demand, savings and
			money market accounts	3	$	1,188,421		1,188,421		1,148,406		1,148,406
		Time deposits		3	$	395,104		385,858		398,204		393,583
	Borrowings			2	$	-		-		-		-
	Junior subordinated debentures			2	$	51,547		52,299		51,547		52,185
Other financial instruments:
	Interest rate swap agreements			2	$	(3,313)		(3,313)		(4,415)		(4,415)
	Letters of credit			2	$	(217)		(217)		(233)		(233)

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Interest Rate Swap Agreement (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2007
Debt Instrument [Line Items]
Long-term Debt, Gross		$ 30.9
Debt Instrument, Basis Spread on Variable Rate	1.40%
Junior Subordinated Debenture | Interest Rate Swap
Debt Instrument [Line Items]
Derivative, Fixed Interest Rate	5.54%

XML

Loans and Allowances for Loan Losses 5 (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011
Financing Receivable, Impaired [Line Items]
Recorded Investment	$ 19,358	$ 22,760	$ 17,307
Unpaid Principal Balance	3,929	3,680	2,453
Sepcific Related Allowance	1,522	933	1,138
Average Recorded Investment	19,545	22,069	20,394
Interest Income Recognized	103	0	127
With no specific allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	15,429		14,854
Unpaid Principal Balance	17,564		16,997
Sepcific Related Allowance	0		0
Average Recorded Investment	15,648		11,811
Interest Income Recognized			127
With specific allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	3,929		2,453
Unpaid Principal Balance	4,185		2,607
Sepcific Related Allowance	1,522		1,138
Average Recorded Investment	3,897		8,583
Interest Income Recognized			0
With specific and no specific allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	19,358		17,307
Unpaid Principal Balance	21,749		19,604
Sepcific Related Allowance	1,522		1,138
Average Recorded Investment	19,545		20,394
Interest Income Recognized			127
Summary by portfolio
Financing Receivable, Impaired [Line Items]
Recorded Investment	19,358		17,307
Unpaid Principal Balance	21,749		19,604
Sepcific Related Allowance	1,522		1,138
Average Recorded Investment	19,545		20,394
Interest Income Recognized			127
Commercial and industrial | With no specific allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,640		2,541
Unpaid Principal Balance	2,151		3,048
Sepcific Related Allowance	0		0
Average Recorded Investment	1,811		1,401
Interest Income Recognized	0		0
Commercial and industrial | With specific allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	2,113		1,376
Unpaid Principal Balance	2,249		1,454
Sepcific Related Allowance	1,079		895
Average Recorded Investment	2,503		3,079
Interest Income Recognized	0		0
Commercial and industrial | Summary by portfolio
Financing Receivable, Impaired [Line Items]
Recorded Investment	15,325		12,995
Unpaid Principal Balance	17,494		15,095
Sepcific Related Allowance	1,522		1,138
Average Recorded Investment	14,718		15,046
Interest Income Recognized	81		114
Commercial mortgages | With no specific allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	9,756		8,001
Unpaid Principal Balance	11,158		9,440
Sepcific Related Allowance	0		0
Average Recorded Investment	9,010		6,578
Interest Income Recognized	81		114
Commercial mortgages | With specific allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,816		1,077
Unpaid Principal Balance	1,936		1,153
Sepcific Related Allowance	443		243
Average Recorded Investment	1,394		3,988
Interest Income Recognized	0		0
Residential Mortgages - first position | With no specific allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	3,859		3,801
Unpaid Principal Balance	4,042		3,968
Sepcific Related Allowance	0		0
Average Recorded Investment	4,331		3,366
Interest Income Recognized	20		13
Residential Mortgages - first position | With specific allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	0		0
Unpaid Principal Balance	0		0
Sepcific Related Allowance	0		0
Average Recorded Investment	0		1,265
Interest Income Recognized	0		0
Residential Mortgages - Second position | With no specific allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	174		411
Unpaid Principal Balance	213		439
Sepcific Related Allowance	0		0
Average Recorded Investment	420		390
Interest Income Recognized	0		0
Residential Mortgages - Second position | With specific allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	0		0
Unpaid Principal Balance	0		0
Sepcific Related Allowance	0		0
Average Recorded Investment	0		201
Interest Income Recognized	0		0
Consumer - Indirect | With no specific allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	0
Unpaid Principal Balance	0
Sepcific Related Allowance	0
Average Recorded Investment	0
Interest Income Recognized	0
Consumer - Indirect | With specific allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	0
Unpaid Principal Balance	0
Sepcific Related Allowance	0
Average Recorded Investment	0
Interest Income Recognized	0
Consumer Other | With no specific allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	0		100
Unpaid Principal Balance	0		102
Sepcific Related Allowance	0		0
Average Recorded Investment	76		76
Interest Income Recognized	2		0
Consumer Other | With specific allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	0
Unpaid Principal Balance	0
Sepcific Related Allowance	0
Average Recorded Investment	0
Interest Income Recognized	0
Residential | Summary by portfolio
Financing Receivable, Impaired [Line Items]
Recorded Investment	4,033		4,212
Unpaid Principal Balance	4,255		4,407
Sepcific Related Allowance	0		0
Average Recorded Investment	4,751		5,222
Interest Income Recognized	20		13
Consumer And Other | With no specific allowance
Financing Receivable, Impaired [Line Items]
Recorded Investment	0
Unpaid Principal Balance	0
Sepcific Related Allowance	0
Average Recorded Investment	0
Interest Income Recognized	0
Consumer And Other | Summary by portfolio
Financing Receivable, Impaired [Line Items]
Recorded Investment	0		100
Unpaid Principal Balance	0		102
Sepcific Related Allowance	0		0
Average Recorded Investment	76		126
Interest Income Recognized	$ 2		$ 0

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Securities

3 Months Ended

Mar. 31, 2012

Securities [Abstract]

Secutrities

(2) Securities

Amortized cost and fair value of available-for-sale and held-to-maturity securities at March 31,2012are summarized as follows:

				March 31, 2012
					Gross Unrealized
				Amortized			Fair
				Cost	Gains	Losses	Value
Securities Available for Sale:
	U.S. Treasury		$	502	-	-	502
	U.S. government sponsored enterprise obligations			51,149	267	(113)	51,303
	State and municipal obligations			51,605	1,627	(16)	53,216
	Corporate obligations (1)			1,094	2	(269)	827
	Equity securities			1,292	190	-	1,482
		Total Securities Available for Sale	$	105,642	2,086	(398)	107,330
		(1)Amortized cost includes cumulative $360,000 write-down prior to 2010 for other-than-temporary impairment.

Securities Held to Maturity:
	U.S. government sponsored enterprise obligations		$	7	2	-	9
	State and municipal obligations			164,629	4,520	(182)	168,967
	Corporate obligations			828	305	-	1,133
		Total Securities Held to Maturity	$	165,464	4,827	(182)	170,109

2) Securities (continued)

The amortized cost and fair value of debt securities by years to maturity as of March 31,2012, follow (in thousands). Maturities of amortizingsecurities are classified in accordance with their contractual repayment schedules. Expected maturities will differ from contracted maturities since issuers may have the right to call or prepay obligations without penalties

		Available for Sale		Held to Maturity
		Amortized		Amortized
		Cost (1)	Fair Value	Cost	Fair Value
Years
Under 1	$	16,011	16,165	28,646	28,895
1 to 5		35,050	36,529	118,385	122,171
5 to 10		48,177	48,268	17,588	17,890
10 and over		5,112	4,886	845	1,153
Total	$	104,350	105,848	165,464	170,109
(1)Amortized cost includes a cumulative $360,000 write-down prior to 2010 for other-than-temporary impairment.

The following table presents the fair value of securities with gross unrealized losses at March 31,2012, aggregated by category and length of time that individual securities have been in a continuous loss position (in thousands).

				Less than 12 months		Over 12 months		Total
				Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
Securities Available for Sale:				Value	Losses	Value	Losses	Value	Losses
	U.S. government sponsored enterprise obligations		$	21,965	113	-	-	21,965	113
	State and municipal obligations			309	2	1,268	14	1,577	16
	Corporate obligations			-	-	1,056	269	1,056	269
		Total temporarily impaired securities	$	22,274	115	2,324	283	24,598	398

Securities Held to Maturity:
	State and municipal obligations		$	15,819	121	4,572	61	20,391	182
		Total temporarily impaired securities	$	15,819	121	4,572	61	20,391	182

Substantially all of the unrealized losses on the Company's securities were caused by market interest rate changes from those in effect when the specific securities were purchased by the Company. The contractual terms of these securities do not permit the issuer to settle the securities at a price less than par value. Except for certain corporate obligations, all securities rated by an independent rating agency carry an investment grade rating. Because the Company does not intend to sell the securities and it believes it is not likely to be required to sell the securities before recovery of their amortized cost basis, which may be, and is likely to be, maturity, the Company does not consider these securities to be other-than-temporarily impaired at March 31,2012, except as discussed below.

In the available-for-sale portfolio, the Company holds approximately $0.8 million of bank trust-preferred securities with an adjusted cost basis of $1.1 million. These securities are backed by debt obligations of banks, with approximately $0.7 million of the securities backed by two of the largest U.S. banks and $0.1 million backed by a pool of banks' debt in the form of a collateralized debt obligation (CDO). As a result of market upheaval, a lack of regular trading market in these securities, and bank failures, the fair value of these securities had fallen sharply in 2008 and continued to fall in the first half of 2009. The Company recognized cumulative other-than-temporary-impairment (OTTI) amounting to $0.9 million on one CDO over several years. Management sold a portion of this security in 2011 and intends to sell the remainder in whole or in part over time. If the financial condition of the underlying banks deteriorates, further write-downs could occur before a sale, which would be reflected in the statement of operations. The maximum potential write-down would be its current carrying value of less than $0.1 million.

(2) Securities (continued)

Amortized cost and fair value of available-for-sale and held-to-maturity securities at December 31, 2011 are summarized as follows:

				December 31, 2011
					Gross Unrealized
				Amortized			Fair
				Cost	Gains	Losses		Value
Securities Available for Sale:
	U.S. Treasury		$	502	-	-		502
	U.S. government sponsored enterprise obligations			55,766	377	(18)		56,125
	State and municipal obligations			53,531	1,917	(23)		55,425
	Corporate obligations			1,093	2	(296)		799
	Equity securities			1,295	112	-		1,407
		Total securities Available for Sale	$	112,187	2,408	(337)		114,258
		(1)Amortized cost includes cumulative write-downs of $360,000 prior to 2010 for other-than-temporary impairment.

Securities Held to Maturity:
	U.S. government sponsored enterprise obligations		$	1,007	1	-	1,008
	State and municipal obligations			165,348	5,113	(135)	170,326
	Corporate obligations			870	313	-	1,183
		Total Securities Held to Maturity	$	167,225	5,427	(135)	172,517

The following table presents the fair value of securities with gross unrealized losses at December 31, 2011, aggregated by category and length of time that individual securities have been in a continuous loss position (in thousands).

				Less than 12 months		Over 12 months		Total
			Fair		Unrealized	Fair	Unrealized	Fair	Unrealized
Securities Available for Sale:				Value	Losses	Value	Losses	Value	Losses
	U.S. government sponsored enterprise obligations		$	7,610	18	-	-	7,610	18
	State and municipal obligations			355	3	996	20	1,351	23
	Corporate obligations			-	-	759	296	759	296
		Total temporarily impaired securities	$	7,965	21	1,755	316	9,720	337
Securities Held to Maturity:
	State and municipal obligations		$	7,886	80	4,647	55	12,533	135
		Total temporarily impaired securities	$	7,886	80	4,647	55	12,533	135

XML

Fair Values of Financial Instruments (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2011	Dec. 31, 2010
Financial Assets:
Servicing Asset at Fair Value, Amount	$ 3,280	$ 3,244	$ 3,465	$ 3,418
Carrying Amount
Financial Assets:
Cash and equivalents	105,573	126,740
Securities, available-for-sale	107,330	114,258
Securities, held-to-maturity	165,464	167,225
FHLB stock and federal reserve stock	2,656	2,656
Loans-net	1,344,268	1,276,426
Servicing Asset at Fair Value, Amount	2,600	2,489
Deposits:
Borrowings	0	0
Carrying Amount | Letters of Credit
Other financial instruments:
Other financial instruments	(217)	(233)
Carrying Amount | Interest Rate Swap
Other financial instruments:
Other financial instruments	(3,313)	(4,415)
Carrying Amount | Demand, savings and money market accounts
Deposits:
Deposits	1,188,421	1,148,406
Carrying Amount | Time deposits
Deposits:
Deposits	395,104	398,204
Carrying Amount | Junior Subordinated Debenture
Deposits:
Junior subordinated debentures	51,547	51,547
Fair Value
Financial Assets:
Cash and equivalents	105,573	126,740
Securities, available-for-sale	107,330	114,258
Securities, held-to-maturity	170,109	172,517
FHLB stock and federal reserve stock	2,656	2,656
Loans-net	1,408,255	1,308,531
Servicing Asset at Fair Value, Amount	3,280	3,244
Deposits:
Borrowings	0	0
Fair Value | Letters of Credit
Other financial instruments:
Other financial instruments	(217)	(233)
Fair Value | Interest Rate Swap
Other financial instruments:
Other financial instruments	(3,313)	(4,415)
Fair Value | Demand, savings and money market accounts
Deposits:
Deposits	1,188,421	1,148,406
Fair Value | Time deposits
Deposits:
Deposits	385,858	393,583
Fair Value | Junior Subordinated Debenture
Deposits:
Junior subordinated debentures	$ 52,299	$ 52,185

XML

Securities 2 (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2011
The amortized cost and fair value of available for sale securites by maturity
Under 1 year amortized cost	$ 16,011
1 to 5 amortized cost	35,050
5 to 10 years amortized cost	48,177
10 and over amortized cost	5,112
Total		112,187
Under 1 year fair value	16,165
1 to 5 fair value	36,529
5 to 10 years fair value	48,268
10 and over fair value	4,886
Fair Value	105,848	114,258
The amortized cost and fair value held to maturity securities by maturity
Under 1 year amortized cost	28,646
1 to 5 amortized cost	118,385
5 to 10 years amortized cost	17,588
10 and over amortized cost	845
Total	165,464	167,225
Under 1 year fair value	28,895
1 to 5 fair value	122,171
5 to 10 years fair value	17,890
10 and over fair value	1,153
Fair Value	$ 163,121	$ 160,401	$ 172,517

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Securities 1 (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2011
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 165,464	$ 167,225
Gross unrealized gains	4,827	5,427
Gross unrealized losses	(182)	(135)
Fair Value	163,121	160,401	172,517
Government Sponsored enterprise obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	7	1,007
Gross unrealized gains	2	1
Gross unrealized losses	0	0
Fair Value	9		1,008
State and municipal obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	164,629	165,348
Gross unrealized gains	4,520	5,113
Gross unrealized losses	(182)	(135)
Fair Value	168,967		170,326
Corporate obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	828	870
Gross unrealized gains	305	313
Gross unrealized losses	0	0
Fair Value	$ 1,133		$ 1,183

XML

Fair Values Measurements (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2012 Available-for-sale Securities	Mar. 31, 2011 Available-for-sale Securities	Dec. 31, 2011 Quoted market prices in active markets (Level 1) U.S. government sponsored enterprise obligations	Dec. 31, 2011 Quoted market prices in active markets (Level 1) State and municipal obligation	Dec. 31, 2011 Quoted market prices in active markets (Level 1) Interest Rate Swap	Dec. 31, 2011 Internal models with significant observable market parameters (Level 2) Other real estate owned	Mar. 31, 2012 Internal models with significant unobservable market parameters (Level 3) U.S Treasury	Mar. 31, 2012 Measured on a recurring basis Quoted market prices in active markets (Level 1) U.S Treasury	Dec. 31, 2011 Measured on a recurring basis Quoted market prices in active markets (Level 1) U.S Treasury	Mar. 31, 2012 Measured on a recurring basis Quoted market prices in active markets (Level 1) U.S. government sponsored enterprise obligations	Mar. 31, 2012 Measured on a recurring basis Quoted market prices in active markets (Level 1) State and municipal obligation	Mar. 31, 2012 Measured on a recurring basis Quoted market prices in active markets (Level 1) All other	Dec. 31, 2011 Measured on a recurring basis Quoted market prices in active markets (Level 1) All other	Mar. 31, 2012 Measured on a recurring basis Quoted market prices in active markets (Level 1) Interest Rate Swap	Mar. 31, 2012 Measured on a recurring basis Quoted market prices in active markets (Level 1) Letters of Credit	Dec. 31, 2011 Measured on a recurring basis Quoted market prices in active markets (Level 1) Letters of Credit	Mar. 31, 2012 Measured on a recurring basis Internal models with significant observable market parameters (Level 2) U.S Treasury	Dec. 31, 2011 Measured on a recurring basis Internal models with significant observable market parameters (Level 2) U.S Treasury	Mar. 31, 2012 Measured on a recurring basis Internal models with significant observable market parameters (Level 2) U.S. government sponsored enterprise obligations	Dec. 31, 2011 Measured on a recurring basis Internal models with significant observable market parameters (Level 2) U.S. government sponsored enterprise obligations	Mar. 31, 2012 Measured on a recurring basis Internal models with significant observable market parameters (Level 2) State and municipal obligation	Dec. 31, 2011 Measured on a recurring basis Internal models with significant observable market parameters (Level 2) State and municipal obligation	Mar. 31, 2012 Measured on a recurring basis Internal models with significant observable market parameters (Level 2) All other	Dec. 31, 2011 Measured on a recurring basis Internal models with significant observable market parameters (Level 2) All other	Mar. 31, 2012 Measured on a recurring basis Internal models with significant observable market parameters (Level 2) Interest Rate Swap	Dec. 31, 2011 Measured on a recurring basis Internal models with significant observable market parameters (Level 2) Interest Rate Swap	Mar. 31, 2012 Measured on a recurring basis Internal models with significant observable market parameters (Level 2) Letters of Credit	Dec. 31, 2011 Measured on a recurring basis Internal models with significant observable market parameters (Level 2) Letters of Credit	Dec. 31, 2011 Measured on a recurring basis Internal models with significant unobservable market parameters (Level 3) U.S Treasury	Mar. 31, 2012 Measured on a recurring basis Internal models with significant unobservable market parameters (Level 3) U.S. government sponsored enterprise obligations	Dec. 31, 2011 Measured on a recurring basis Internal models with significant unobservable market parameters (Level 3) U.S. government sponsored enterprise obligations	Mar. 31, 2012 Measured on a recurring basis Internal models with significant unobservable market parameters (Level 3) State and municipal obligation	Dec. 31, 2011 Measured on a recurring basis Internal models with significant unobservable market parameters (Level 3) State and municipal obligation	Mar. 31, 2012 Measured on a recurring basis Internal models with significant unobservable market parameters (Level 3) All other	Dec. 31, 2011 Measured on a recurring basis Internal models with significant unobservable market parameters (Level 3) All other	Mar. 31, 2012 Measured on a recurring basis Internal models with significant unobservable market parameters (Level 3) Interest Rate Swap	Dec. 31, 2011 Measured on a recurring basis Internal models with significant unobservable market parameters (Level 3) Interest Rate Swap	Mar. 31, 2012 Measured on a recurring basis Internal models with significant unobservable market parameters (Level 3) Letters of Credit	Dec. 31, 2011 Measured on a recurring basis Internal models with significant unobservable market parameters (Level 3) Letters of Credit	Mar. 31, 2012 Measured on a recurring basis Carrying Amount U.S Treasury	Dec. 31, 2011 Measured on a recurring basis Carrying Amount U.S Treasury	Mar. 31, 2012 Measured on a recurring basis Carrying Amount U.S. government sponsored enterprise obligations	Dec. 31, 2011 Measured on a recurring basis Carrying Amount U.S. government sponsored enterprise obligations	Mar. 31, 2012 Measured on a recurring basis Carrying Amount State and municipal obligation	Dec. 31, 2011 Measured on a recurring basis Carrying Amount State and municipal obligation	Mar. 31, 2012 Measured on a recurring basis Carrying Amount All other	Dec. 31, 2011 Measured on a recurring basis Carrying Amount All other	Mar. 31, 2012 Measured on a recurring basis Carrying Amount Interest Rate Swap	Dec. 31, 2011 Measured on a recurring basis Carrying Amount Interest Rate Swap	Mar. 31, 2012 Measured on a recurring basis Carrying Amount Letters of Credit	Dec. 31, 2011 Measured on a recurring basis Carrying Amount Letters of Credit	Mar. 31, 2012 Measured on a non-recurring basis Quoted market prices in active markets (Level 1) Loans-held-for-sale	Dec. 31, 2011 Measured on a non-recurring basis Quoted market prices in active markets (Level 1) Loans-held-for-sale	Mar. 31, 2012 Measured on a non-recurring basis Quoted market prices in active markets (Level 1) Collateral dependent impaired loans	Dec. 31, 2011 Measured on a non-recurring basis Quoted market prices in active markets (Level 1) Collateral dependent impaired loans	Mar. 31, 2012 Measured on a non-recurring basis Quoted market prices in active markets (Level 1) Other real estate owned	Dec. 31, 2011 Measured on a non-recurring basis Quoted market prices in active markets (Level 1) Other real estate owned	Mar. 31, 2012 Measured on a non-recurring basis Quoted market prices in active markets (Level 1) Loans servicing assets	Dec. 31, 2011 Measured on a non-recurring basis Quoted market prices in active markets (Level 1) Loans servicing assets	Mar. 31, 2012 Measured on a non-recurring basis Internal models with significant observable market parameters (Level 2) Loans-held-for-sale	Dec. 31, 2011 Measured on a non-recurring basis Internal models with significant observable market parameters (Level 2) Loans-held-for-sale	Mar. 31, 2012 Measured on a non-recurring basis Internal models with significant observable market parameters (Level 2) Collateral dependent impaired loans	Dec. 31, 2011 Measured on a non-recurring basis Internal models with significant observable market parameters (Level 2) Collateral dependent impaired loans	Mar. 31, 2012 Measured on a non-recurring basis Internal models with significant observable market parameters (Level 2) Other real estate owned	Mar. 31, 2012 Measured on a non-recurring basis Internal models with significant observable market parameters (Level 2) Loans servicing assets	Dec. 31, 2011 Measured on a non-recurring basis Internal models with significant observable market parameters (Level 2) Loans servicing assets	Mar. 31, 2012 Measured on a non-recurring basis Internal models with significant unobservable market parameters (Level 3) Loans-held-for-sale	Dec. 31, 2011 Measured on a non-recurring basis Internal models with significant unobservable market parameters (Level 3) Loans-held-for-sale	Mar. 31, 2012 Measured on a non-recurring basis Internal models with significant unobservable market parameters (Level 3) Collateral dependent impaired loans	Dec. 31, 2011 Measured on a non-recurring basis Internal models with significant unobservable market parameters (Level 3) Collateral dependent impaired loans	Mar. 31, 2012 Measured on a non-recurring basis Internal models with significant unobservable market parameters (Level 3) Other real estate owned	Dec. 31, 2011 Measured on a non-recurring basis Internal models with significant unobservable market parameters (Level 3) Other real estate owned	Mar. 31, 2012 Measured on a non-recurring basis Internal models with significant unobservable market parameters (Level 3) Loans servicing assets	Dec. 31, 2011 Measured on a non-recurring basis Internal models with significant unobservable market parameters (Level 3) Loans servicing assets	Mar. 31, 2012 Measured on a non-recurring basis Carrying Amount Loans-held-for-sale	Dec. 31, 2011 Measured on a non-recurring basis Carrying Amount Loans-held-for-sale	Mar. 31, 2012 Measured on a non-recurring basis Carrying Amount Collateral dependent impaired loans	Dec. 31, 2011 Measured on a non-recurring basis Carrying Amount Collateral dependent impaired loans	Mar. 31, 2012 Measured on a non-recurring basis Carrying Amount Other real estate owned	Dec. 31, 2011 Measured on a non-recurring basis Carrying Amount Other real estate owned	Mar. 31, 2012 Measured on a non-recurring basis Carrying Amount Loans servicing assets	Dec. 31, 2011 Measured on a non-recurring basis Carrying Amount Loans servicing assets
Assets
Total assets				$ 0	$ 0		$ 0	$ 0	$ 502	$ 502	$ 0	$ 0	$ 0	$ 0				$ 0	$ 0	$ 51,303	$ 56,125	$ 53,216	$ 55,425	$ 2,212	$ 1,407					$ 0	$ 0	$ 0	$ 0	$ 0	$ 97	$ 799					$ 502	$ 502	$ 51,303	$ 56,125	$ 53,216	$ 55,425	$ 2,309	$ 2,206					$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 11,636	$ 7,556	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 3,929	$ 2,453	$ 3,127	$ 4,235	$ 2,600	$ 2,489	$ 11,636	$ 7,556	$ 3,929	$ 2,453	$ 3,127	$ 4,235	$ 2,600	$ 2,489
Liabilities
Total liabilities						0									0	0	0									3,313	4,415	217	233								0	0	0	0									3,313	4,415	217	233
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Securities available for sale, beginning balance		799	958
Securities transferred to Level 2 during period	(730)
Unrealized gain included in other comprehensive income		28	37
Securities available for sale, end of balance		$ 97	$ 995

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Securities 3 (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Available for sale securities with gross unrealized losses [Line Items]
Less than 12 months fair value	$ 22,274	$ 7,965
Less than 12 months unrealized losses	115	21
Over 12 months fair value	2,324	1,755
Over 12 months unrealized losses	283	316
Total fair value	24,598	9,720
Total unrealized losses	398	337
US Treasury [Member]
Available for sale securities with gross unrealized losses [Line Items]
Less than 12 months fair value	0
Less than 12 months unrealized losses	0
Over 12 months fair value	0
Over 12 months unrealized losses	0
Total fair value	0
Total unrealized losses	0
Government Sponsored enterprise obligations [Member]
Available for sale securities with gross unrealized losses [Line Items]
Less than 12 months fair value	21,965	7,610
Less than 12 months unrealized losses	113	18
Over 12 months fair value	0	0
Over 12 months unrealized losses	0	0
Total fair value	21,965	7,610
Total unrealized losses	113	18
State and municipal obligations [Member]
Available for sale securities with gross unrealized losses [Line Items]
Less than 12 months fair value	309	355
Less than 12 months unrealized losses	2	3
Over 12 months fair value	1,268	996
Over 12 months unrealized losses	14	20
Total fair value	1,577	1,351
Total unrealized losses	16	23
Corporate obligations [Member]
Available for sale securities with gross unrealized losses [Line Items]
Less than 12 months fair value	0	0
Less than 12 months unrealized losses	0	0
Over 12 months fair value	1,056	759
Over 12 months unrealized losses	269	296
Total fair value	1,056	759
Total unrealized losses	$ 269	$ 296

XML

Securities 4 (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Securities held to maturity with gross unrealized losses [Line Items]
Less than 12 months fair value	$ 15,819	$ 7,886
Less than 12 months unrealized losses	121	80
Over 12 months fair value	4,572	4,647
over 12 months unrealized losses	61	55
Total fair value	20,391	12,533
Total unrealized losses	182	135
Government Sponsored enterprise obligations [Member]
Securities held to maturity with gross unrealized losses [Line Items]
Less than 12 months fair value	0
Less than 12 months unrealized losses	0
Over 12 months fair value	0
over 12 months unrealized losses	0
Total fair value	0
Total unrealized losses	0
State and municipal obligations [Member]
Securities held to maturity with gross unrealized losses [Line Items]
Less than 12 months fair value	15,819	7,886
Less than 12 months unrealized losses	121	80
Over 12 months fair value	4,572	4,647
over 12 months unrealized losses	61	55
Total fair value	20,391	12,533
Total unrealized losses	182	135
Corporate obligations [Member]
Securities held to maturity with gross unrealized losses [Line Items]
Less than 12 months fair value		0
Less than 12 months unrealized losses		0
Over 12 months fair value		0
over 12 months unrealized losses		0
Total fair value		0
Total unrealized losses		$ 0

XML

Basis of Presentation

3 Months Ended

Mar. 31, 2012

Basis Of Presentation [Abstract]

Basis of Presentation

(1)   Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and applicable regulations of the Securities and Exchange Commission (SEC) and with generally accepted accounting principles for interim financial information. Such principles are applied on a basis consistent with those reflected in the 2011 Annual Report (defined below) of the Company filed with the SEC. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. Management has prepared the financial information included herein without audit by an independent registered public accounting firm. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month periods ended March 31,2012, are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2011 (the “2011 Annual Report”).

Amounts in prior periods' condensed consolidated financial statements are reclassified whenever necessary to conform to the current year's presentation.

Management has evaluated the impact of subsequent events on these financial statements to the date of filing of this Form 10-Q with the Securities and Exchange Commission.

XML

Securities 5 (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Available For Sale Securities Backed By Guarantees [Line Items]
Available for sale securities - fair value	$ 107,330	$ 114,258
Available for sale securities - adjusted cost basis	$ 105,642

XML

Earnings Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Basic Earnings Per Share:
Net income applicable to common shareholders	$ 3,529	$ 4,339
Weighted average common shares outstanding	1,887,254	1,888,570
Basic earnings per share	$ 1.87	$ 2.30
Diluted Earnings Per Share:
Net income applicable to common shareholders	$ 3,529	$ 4,339
Weighted average common shares outstanding	1,887,254	1,888,570
Effect of assumed exercise of stock options	38,688	34,079
Total	1,925,942	1,922,649
Diluted earnings per share	$ 1.83	$ 2.26

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Assets [Abstract]
Cash and Due from Banks	$ 35,266	$ 52,715
Interest-bearing Deposits in Banks and Other Financial Institutions	5,882	6,490
Federal funds sold	64,425	67,535
Securities:
- Available for sale, at fair value	107,330	114,258
- Held-to-maturity	165,464	167,225
Loans - net	1,344,268	1,276,426
Premises and equipment - net	16,015	16,101
Accrued interest receivable	7,404	6,627
Federal Home Loan Bank stock and Federal Reserve Bank stock	2,656	2,656
Goodwill	15,810	15,810
Intangible assets	6,584	6,787
Prepaid FDIC Assessment	3,647	3,905
Other assets	24,631	24,935
Total Assets	1,799,382	1,761,470
Deposits:
Demand Non-interest bearing	232,257	227,284
Demand-interest bearing	183,592	175,409
Savings and money market	772,572	745,713
Time	395,104	398,204
Total deposits	1,583,525	1,546,610
Borrowings	0	0
Junior subordinated debentures	51,547	51,547
Accrued interest payable and other liabilities	27,375	27,533
Total Liabilities	1,662,447	1,625,690
Stockholders' Equity:
Preferred stock	0	0
Common stock	9,732	9,732
Additional paid-in-capital	8,834	8,834
Retained earnings	121,373	120,675
Treasury stock	(4,912)	(4,912)
Accumulated other comprehensive income, net	(1,040)	(1,455)
Total Stockholder's Equity	133,987	132,874
Non-controlling interests	2,948	2,906
Total Equity	136,935	135,780
Total Liabilities and Stockholders' Equity	$ 1,799,382	$ 1,761,470

XML

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (USD $)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Noncontrolling Interest [Member]
Balance at Dec. 31, 2010		$ 9,732,000	$ 8,823,000	$ 109,768,000	$ (4,728,000)	$ 199,000	$ 0
Balance, shares at Dec. 31, 2010		1,888,748
Comprehensive income:
Change in fair value of Interest rate swaps		0	0	0	0	703,000	0
Change in unrealized gain on securities available for sale		0	0	0	0	(163,000)	0
Plus reclassification adjustment for realized losses included in net income on called securities	(13,000)	0	0	0	0	13,000	0
Net income	4,339	0	0	4,339,000	0	0	0
Purchase of treasury stock		0	0	0	(19,000)	0	0
Purchase of treasury stock, shares		(200)
Shares issued as compensation		0	0	0	0	0	0
Shares issued as compensation, shares		0
Cash dividend		0	0	(2,691,000)	0	0	0
Balance at Mar. 31, 2011		9,732,000	8,823,000	111,416,000	(4,747,000)	752,000	0
Balance, shares at Mar. 31, 2011		1,888,548
Balance at Dec. 31, 2011	135,780,000	9,732,000	8,834,000	120,675,000	(4,912,000)	(1,455,000)	2,906,000
Balance, shares at Dec. 31, 2011		1,887,254
Comprehensive income:
Change in fair value of Interest rate swaps		0	0	0	0	672,000	0
Change in unrealized gain on securities available for sale		0	0	0	0	(219,000)	0
Plus reclassification adjustment for realized losses included in net income on called securities	38,000	0	0	0	0	(38,000)	0
Net income	3,571,000	0	0	3,529,000	0	0	42,000
Cash dividend		0	0	(2,831,000)	0	0	0
Balance at Mar. 31, 2012	$ 136,935,000	$ 9,732,000	$ 8,834,000	$ 121,373,000	$ (4,912,000)	$ (1,040,000)	$ 2,948,000
Balance, shares at Mar. 31, 2012		1,887,254

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Loans and Allowances for Loan Losses 3 (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2011
Financing Receivable, Recorded Investment [Line Items]
Total	$ 1,352,055	$ 1,284,887
Summary of nonaccruing loans and other nonperforming assets
Accruing loans 90 days or more delinquent	554	969	208
Nonaccruing loans	19,358	17,307	22,760
Total nonperforming loans	19,912	18,276	22,968
Other real estate owned	3,562	4,632	3,836
Less write-down of other real estate owned	(435)	(397)	(551)
Total nonperforming assets	23,039	22,511	26,253
1 Superior
Financing Receivable, Recorded Investment [Line Items]
Total		9,814
2 Good
Financing Receivable, Recorded Investment [Line Items]
Total		8,826
3 Satisfactory
Financing Receivable, Recorded Investment [Line Items]
Total		68,246
4 Watch
Financing Receivable, Recorded Investment [Line Items]
Total		43,928
5 Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total		7,864
6 Substandard
Financing Receivable, Recorded Investment [Line Items]
Total		29,440
7 Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total		0
Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Total	198,118	198,744
Summary of nonaccruing loans and other nonperforming assets
Accruing loans 90 days or more delinquent	88	75
Nonaccruing loans	3,753	3,917
Commercial and industrial | 1 Superior
Financing Receivable, Recorded Investment [Line Items]
Total	10,377
Commercial and industrial | 2 Good
Financing Receivable, Recorded Investment [Line Items]
Total	8,268
Commercial and industrial | 3 Satisfactory
Financing Receivable, Recorded Investment [Line Items]
Total	69,249
Commercial and industrial | 4 Watch
Financing Receivable, Recorded Investment [Line Items]
Total	43,078
Commercial and industrial | 5 Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total	12,041
Commercial and industrial | 6 Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	22,395
Commercial and industrial | 7 Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	0
Commercial and industrial | 8 Loss Subtotal
Financing Receivable, Recorded Investment [Line Items]
Total	165,408	168,118
Commercial and industrial | 9 Not Rated
Financing Receivable, Recorded Investment [Line Items]
Total	32,710	30,626
Commercial mortgages
Financing Receivable, Recorded Investment [Line Items]
Total	493,457	467,413
Summary of nonaccruing loans and other nonperforming assets
Accruing loans 90 days or more delinquent	0	0
Nonaccruing loans	11,572	9,078
Commercial mortgages | 1 Superior
Financing Receivable, Recorded Investment [Line Items]
Total	0	105
Commercial mortgages | 2 Good
Financing Receivable, Recorded Investment [Line Items]
Total	26,459	26,195
Commercial mortgages | 3 Satisfactory
Financing Receivable, Recorded Investment [Line Items]
Total	195,085	177,882
Commercial mortgages | 4 Watch
Financing Receivable, Recorded Investment [Line Items]
Total	209,335	210,901
Commercial mortgages | 5 Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total	6,289	4,645
Commercial mortgages | 6 Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	31,573	30,018
Commercial mortgages | 7 Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Commercial mortgages | 8 Loss Subtotal
Financing Receivable, Recorded Investment [Line Items]
Total	468,741	449,746
Commercial mortgages | 9 Not Rated
Financing Receivable, Recorded Investment [Line Items]
Total	24,716	17,667
Residential Mortgages - first position
Financing Receivable, Recorded Investment [Line Items]
Total	262,770	256,173
Summary of nonaccruing loans and other nonperforming assets
Accruing loans 90 days or more delinquent	390	652
Nonaccruing loans	3,859	3,801
Residential Mortgages - first position | 1 Superior
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Residential Mortgages - first position | 2 Good
Financing Receivable, Recorded Investment [Line Items]
Total	1,656	1,718
Residential Mortgages - first position | 3 Satisfactory
Financing Receivable, Recorded Investment [Line Items]
Total	1,280	1,409
Residential Mortgages - first position | 4 Watch
Financing Receivable, Recorded Investment [Line Items]
Total	4,834	6,045
Residential Mortgages - first position | 5 Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total	1,009	1,127
Residential Mortgages - first position | 6 Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	4,263	4,496
Residential Mortgages - first position | 7 Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	7	0
Residential Mortgages - first position | 8 Loss Subtotal
Financing Receivable, Recorded Investment [Line Items]
Total	13,049	14,795
Residential Mortgages - first position | 9 Not Rated
Financing Receivable, Recorded Investment [Line Items]
Total	249,721	241,378
Residential Mortgages - Second position
Financing Receivable, Recorded Investment [Line Items]
Total	100,368	101,877
Summary of nonaccruing loans and other nonperforming assets
Accruing loans 90 days or more delinquent	0	8
Nonaccruing loans	174	411
Residential Mortgages - Second position | 1 Superior
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Residential Mortgages - Second position | 2 Good
Financing Receivable, Recorded Investment [Line Items]
Total	3,172	2,560
Residential Mortgages - Second position | 3 Satisfactory
Financing Receivable, Recorded Investment [Line Items]
Total	564	576
Residential Mortgages - Second position | 4 Watch
Financing Receivable, Recorded Investment [Line Items]
Total	106	269
Residential Mortgages - Second position | 5 Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Residential Mortgages - Second position | 6 Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	225	453
Residential Mortgages - Second position | 7 Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	0	7
Residential Mortgages - Second position | 8 Loss Subtotal
Financing Receivable, Recorded Investment [Line Items]
Total	4,067	3,865
Residential Mortgages - Second position | 9 Not Rated
Financing Receivable, Recorded Investment [Line Items]
Total	96,301	98,012
Consumer - Indirect
Financing Receivable, Recorded Investment [Line Items]
Total	261,619	227,541
Summary of nonaccruing loans and other nonperforming assets
Accruing loans 90 days or more delinquent	61	165
Nonaccruing loans	0	0
Consumer - Indirect | 1 Superior
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Consumer - Indirect | 2 Good
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Consumer - Indirect | 3 Satisfactory
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Consumer - Indirect | 4 Watch
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Consumer - Indirect | 5 Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Consumer - Indirect | 6 Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Consumer - Indirect | 7 Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Consumer - Indirect | 8 Loss Subtotal
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Consumer - Indirect | 9 Not Rated
Financing Receivable, Recorded Investment [Line Items]
Total	261,619	227,541
Consumer Other
Financing Receivable, Recorded Investment [Line Items]
Total	24,087	25,583
Summary of nonaccruing loans and other nonperforming assets
Accruing loans 90 days or more delinquent	15	69
Nonaccruing loans	0	100
Consumer Other | 1 Superior
Financing Receivable, Recorded Investment [Line Items]
Total	816	913
Consumer Other | 2 Good
Financing Receivable, Recorded Investment [Line Items]
Total	1,084	0
Consumer Other | 3 Satisfactory
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Consumer Other | 4 Watch
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Consumer Other | 5 Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Consumer Other | 6 Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	0	100
Consumer Other | 7 Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Consumer Other | 8 Loss Subtotal
Financing Receivable, Recorded Investment [Line Items]
Total	1,900	1,013
Consumer Other | 9 Not Rated
Financing Receivable, Recorded Investment [Line Items]
Total	22,187	24,570
Loans-held-for-sale
Financing Receivable, Recorded Investment [Line Items]
Total	11,636	7,556
Summary of nonaccruing loans and other nonperforming assets
Accruing loans 90 days or more delinquent	0	0
Nonaccruing loans	0	0
Loans-held-for-sale | 1 Superior
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Loans-held-for-sale | 2 Good
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Loans-held-for-sale | 3 Satisfactory
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Loans-held-for-sale | 4 Watch
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Loans-held-for-sale | 5 Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Loans-held-for-sale | 6 Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Loans-held-for-sale | 7 Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Loans-held-for-sale | 8 Loss Subtotal
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Loans-held-for-sale | 9 Not Rated
Financing Receivable, Recorded Investment [Line Items]
Total	11,636	7,556
Unallocated | 1 Superior
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Unallocated | 2 Good
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Unallocated | 3 Satisfactory
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Unallocated | 4 Watch
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Unallocated | 5 Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Unallocated | 6 Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Unallocated | 7 Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Unallocated | 8 Loss Subtotal
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Unallocated | 9 Not Rated
Financing Receivable, Recorded Investment [Line Items]
Total	$ 9,054	$ 7,634

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Loans and Allowances for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2012

Loans and Allowances for Loan Losses [Abstract]

Schedule Of Major Classification Of Loans

			2012	2011
Commercial and industrial		$	198,118	198,744
Mortgages:
	Commercial		493,457	467,413
	Residential - first lien		262,770	256,173
	Residential - second lien		100,368	101,877
Consumer:
	Automobile - indirect		261,619	227,541
	Other		24,087	25,583
Loans held for sale			11,636	7,556
	Total loans		1,352,055	1,284,887
Plus - Net deferred loan costs			9,054	7,634
Less - Allowance for loan losses			(16,841)	(16,095)
	Loans - net	$	1,344,268	1,276,426

Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent [Table Text Block]

		For the Three-Month Periods
		Ended March 31,
		2012	2011
Balance at the beginning of period	$	16,095	15,635
Loans charged off		(710)	(705)
Recoveries of loans charged off		306	230
Provision charged to operations		1,150	750
Balance at end of period	$	16,841	15,910

Schedule Of Allowance For Loan Losses By Loan Type Table [Text Block]

				Residential	Residential
				mortgage -	mortgage -			Loans
		Commercial	Commercial	first	second	Consumer -	Consumer -	held for
		and industrial	mortgage	position	position	indirect	other	sale	Unallocated	Total
Beginning Balance	$	6,393	994	1,786	521	4,839	916	-	646	16,095
Charge-offs		(191)	-	(75)	(3)	(283)	(158)	-	-	(710)
Recoveries		38	2	6	2	175	83	-	-	306
Provision		(1,362)	286	190	14	1,130	381	-	511	1,150
Ending Balance	$	4,878	1,282	1,907	534	5,861	1,222	-	1,157	16,841
of which:
Amount for loans individually
evaluated for impairment	$	1,079	443	-	-	-	-	-	-	1,522
Amount for loans collectively
evaluated for impairment	$	3,799	839	1,907	534	5,861	1,222	-	1,157	15,319
Balance of loans individually
evaluated for impairment	$	3,668	11,545	-	29	-	-	-	-	15,242
Balance of loans collectively
evaluated for impairment	$	194,450	481,912	262,770	100,339	261,619	24,087	11,636	9,054	1,345,867

Financing Receivable Credit Quality Indicators [Table Text Block]

Credit Quality Indicator Analysis as of March 31, 2012
				Residential	Residential
				mortgage -	mortgage -			Loans	Deferred
		Commercial	Commercial	first	second	Consumer -	Consumer -	held for	Fees and
		and industrial	mortgage	position	position	indirect	other	sale	Costs	Total
1-Superior	$	10,377	-	-	-	-	816	-	-	11,193
2-Good		8,268	26,459	1,656	3,172	-	1,084	-	-	40,639
3-Satisfactory		69,249	195,085	1,280	564	-	-	-	-	266,178
4-Watch		43,078	209,335	4,834	106	-	-	-	-	257,353
5-Special Mention		12,041	6,289	1,009	-	-	-	-	-	19,339
6-Substandard		22,395	31,573	4,263	225	-	-	-	-	58,456
7-Doubtful		-	-	7	-	-	-	-	-	7
Subtotal	$	165,408	468,741	13,049	4,067	-	1,900	-	-	653,165
9 and not rated		32,710	24,716	249,721	96,301	261,619	22,187	11,636	9,054	707,944
Total	$	198,118	493,457	262,770	100,368	261,619	24,087	11,636	9,054	1,361,109

Credit Quality Indicator Analysis as of December 31, 2011
				Residential	Residential
				mortgage -	mortgage -			Loans	Deferred
		Commercial	Commercial	first	second	Consumer -	Consumer -	held for	Fees and
		and industrial	mortgage	position	position	indirect	other	sale	Costs	Total
1-Superior	$	9,814	105	-	-	-	913	-	-	10,832
2-Good		8,826	26,195	1,718	2,560	-	-	-	-	39,299
3 Satisfactory		68,246	177,882	1,409	576	-	-	-	-	248,113
4 Watch		43,928	210,901	6,045	269	-	-	-	-	261,143
5 Special Mention		7,864	4,645	1,127	-	-	-	-	-	13,636
6 Substandard		29,440	30,018	4,496	453	-	100	-	-	64,507
7 Doubtful		-	-	-	7	-	-	-	-	7
8 Loss		-	-	-	-	-	-	-	-	-
Subtotal	$	168,118	449,746	14,795	3,865	-	1,013	-	-	637,537
9 and not rated		30,626	17,667	241,378	98,012	227,541	24,570	7,556	7,634	654,984
Total	$	198,744	467,413	256,173	101,877	227,541	25,583	7,556	7,634	1,292,521

Schedule Of Nonaccruing Loans And Other Nonperforming Assets Table [Text Block]

			March 31,		December 31,		March 31,
				2012		2011		2011
Accruing loans 90 days or more delinquent			$	554		969		208
Nonaccruing loans				19,358		17,307		22,760
		Total nonperforming loans		19,912		18,276		22,968
Other real estate owned				3,562		4,632		3,836
	(less write-down of other real estate owned)			(435)		(397)		(551)
		Total nonperforming assets	$	23,039		22,511		26,253

Past Due Financing Receivables [Table Text Block]

Aging Analysis as of March 31, 2012
					90 Days				> 90 Days
			30-59 Days	60-89 Days	Or	Total		Total	and	Non-Accrual
			Past Due	Past Due	Greater	Past Due	Current	Loans	Accruing	Loans
Commercial and industrial		$	335	250	3,841	4,426	193,692	198,118	88	3,753
Commercial mortgages			1,497	1,326	11,572	14,395	479,062	493,457	-	11,572
Residential - first lien			3,084	1,415	4,249	8,748	254,022	262,770	390	3,859
Residential - junior lien			341	90	174	605	99,763	100,368	-	174
Consumer:
	Automobile - Indirect		1,310	726	61	2,097	259,522	261,619	61	-
	Other		204	21	15	240	23,847	24,087	15	-
Loans held-for-sale			-	-	-	-	11,636	11,636	-	-
		$	6,771	3,828	19,912	30,511	1,321,544	1,352,055	554	19,358

Aging Analysis as of December 31, 2011
					90 Days				> 90 Days
			30-59 Days	60-89 Days	Or	Total		Total	and	Non-Accrual
			Past Due	Past Due	Greater	Past Due	Current	Loans	Accruing	Loans
Commercial and industrial		$	395	432	3,992	4,819	193,925	198,744	75	3,917
Commercial mortgages			2,184	-	9,078	11,262	456,151	467,413	-	9,078
Residential - first lien			633	55	4,453	5,141	251,032	256,173	652	3,801
Residential - junior lien			444	91	419	954	100,923	101,877	8	411
Consumer:
	Automobile - indirect		1,766	653	165	2,584	224,957	227,541	165	-
	Other		257	88	169	514	25,069	25,583	69	100
Loans held-for-sale			-	-	-	-	7,556	7,556	-	-
Total		$	5,679	1,319	18,276	25,274	1,259,613	1,284,887	969	17,307

Impaired Financing Receivables [Table Text Block]

		As of and for	As of and for		As of and for
	the three-month		the year	the three-month
		period ended	ended		period ended
		March 31,	December 31,		March 31,
		2012	2011		2011
Recorded investment at period end	$	19,358	17,307		22,760
Impaired loans with specific related allowance at period end	$	3,929	2,453		3,680
Amount of specific related allowance at period end	$	1,522	1,138		933
Average investment during the period	$	19,545	20,394		22,069
Interest income recognized on a cash basis during the period	$	103	127		-

					Unpaid	Specific	Average	Interest
				Recorded	principal	Related	Recorded	income
				Investment	balance	Allowance	Investment	Recognized
With no specific allowance
	Commercial and industrial		$	1,640	2,151	-	1,811	-
	Commercial mortgage			9,756	11,158	-	9,010	81
	Residential mortgage - first position			3,859	4,042	-	4,331	20
	Residential mortgage - second position			174	213	-	420	-
	Consumer - other			-	-	-	76	2
		Subtotal		15,429	17,564	-	15,648	103
With specific allowance
	Commercial and industrial			2,113	2,249	1,079	2,503	-
	Commercial mortgage			1,816	1,936	443	1,394	-
		Subtotal		3,929	4,185	1,522	3,897	-
		Total	$	19,358	21,749	1,522	19,545	103
Summary by portfolio:
Commercial			$	15,325	17,494	1,522	14,718	81
Residential				4,033	4,255	-	4,751	20
Consumer and other				-	-	-	76	2
		Total	$	19,358	21,749	1,522	19,545	103

December 31, 2011
					Unpaid	Specific	Average	Interest
				Recorded	principal	Related	Recorded	income
With no specific allowance				Investment	balance	Allowance	Investment	Recognized
	Commercial and industrial		$	2,541	3,048	-	1,401	-
	Commercial mortgage			8,001	9,440	-	6,578	114
	Residential mortgage - first position			3,801	3,968	-	3,366	13
	Residential mortgage - second position			411	439	-	390	-
	Consumer - other			100	102	-	76	-
		Subtotal		14,854	16,997	-	11,811	127
With specific allowance
	Commercial and industrial			1,376	1,454	895	3,079	-
	Commercial mortgage			1,077	1,153	243	3,988	-
	Residential mortgage - first position			-	-	-	1,265	-
	Residential mortgage - second position			-	-	-	201	-
		Subtotal		2,453	2,607	1,138	8,583	-
		Total	$	17,307	19,604	1,138	20,394	127
Summary by portfolio:
	Commercial		$	12,995	15,095	1,138	15,046	114
	Residential			4,212	4,407	-	5,222	13
	Consumer and other			100	102	-	126	-
		Total	$	17,307	19,604	1,138	20,394	127

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Loans and Allowances for Loan Losses 4 (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	$ 6,771		$ 5,679
60-89 Days Past Due	3,828		1,319
90 Days or Greater	19,912		18,276
Total Past Due	30,511		25,274
Current	1,321,544		1,259,613
Total loans	1,352,055		1,284,887
>90 Days and Accruing	554	208	969
Non-Accrual Loans	19,358	22,760	17,307
Summary of information regarding impaired loans
Recorded investment at period end	19,358	22,760	17,307
Amount of specific related allowance at period end	1,522	933	1,138
Average investment during the period	19,545	22,069	20,394
Interest income recognized on a cash basis during the period	103	0	127
Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	335		395
60-89 Days Past Due	250		432
90 Days or Greater	3,841		3,992
Total Past Due	4,426		4,819
Current	193,692		193,925
Total loans	198,118		198,744
>90 Days and Accruing	88		75
Non-Accrual Loans	3,753		3,917
Commercial mortgages
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	1,497		2,184
60-89 Days Past Due	1,326		0
90 Days or Greater	11,572		9,078
Total Past Due	14,395		11,262
Current	479,062		456,151
Total loans	493,457		467,413
>90 Days and Accruing	0		0
Non-Accrual Loans	11,572		9,078
Residential Mortgages - first position
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	3,084		633
60-89 Days Past Due	1,415		55
90 Days or Greater	4,249		4,453
Total Past Due	8,748		5,141
Current	254,022		251,032
Total loans	262,770		256,173
>90 Days and Accruing	390		652
Non-Accrual Loans	3,859		3,801
Mortgages Residential - junior lien
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	341		444
60-89 Days Past Due	90		91
90 Days or Greater	174		419
Total Past Due	605		954
Current	99,763		100,923
Total loans	100,368		101,877
>90 Days and Accruing	0		8
Non-Accrual Loans	174		411
Consumer Automobile - Indirect
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	1,310		1,766
60-89 Days Past Due	726		653
90 Days or Greater	61		165
Total Past Due	2,097		2,584
Current	259,522		224,957
Total loans	261,619		227,541
>90 Days and Accruing	61		165
Non-Accrual Loans	0		0
Consumer Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	204		257
60-89 Days Past Due	21		88
90 Days or Greater	15		169
Total Past Due	240		514
Current	23,847		25,069
Total loans	24,087		25,583
>90 Days and Accruing	15		69
Non-Accrual Loans	0		100
Loans-held-for-sale
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	0		0
60-89 Days Past Due	0		0
90 Days or Greater	0		0
Total Past Due	0		0
Current	11,636		7,556
Total loans	11,636		7,556
>90 Days and Accruing	0		0
Non-Accrual Loans	$ 0		$ 0

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2012

Segment Information [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Three months ended March 31,				2012
				Bank	CNBM	GVT	OBS	Intersegment	Total
Net interest income			$	16,193	2	3	-	(5)	16,193
Non-interest income				5,760	1,284	885	591	(338)	8,182
	Total revenues			21,953	1,286	888	591	(343)	24,375
Provision for loan losses				1,150	-	-	-	-	1,150
Intangible amortization				46	-	157	-	-	203
Other operating expenses				16,148	741	761	470	(179)	17,941
	Total expenses			17,344	741	918	470	(179)	19,294
		Income (loss) before tax		4,609	545	(30)	121	(164)	5,081
Income tax				1,510	215	(7)	-	(208)	1,510
	Net income attributable to noncontrolling interests
		and Canandaigua National Corporation		3,099	330	(23)	121	44	3,571
Less: Net income attributable to noncontrolling interests				-	-	-	42	-	42
	Net income attributable to
		Canandaigua National Corporation	$	3,099	330	(23)	79	44	3,529
Total identifiable assets			$	1,773,882	10,198	16,432	15,874	(17,004)	1,799,382

Three months ended March 31,				2011
				Bank	CNBM	GVT	Intersegment	Total
Net interest income			$	14,823	3	3	(6)	14,823
Non-interest income				6,022	736	1,037	(603)	7,192
	Total revenues			20,845	739	1,040	(609)	22,015
Provision for loan losses				750	-	-	-	750
Intangible amortization				50	-	172	-	222
Other operating expenses				13,956	571	744	(172)	15,099
	Total expenses			14,756	571	916	(172)	16,071
		Income (loss) before tax		6,089	168	124	(437)	5,944
Income tax				1,605	64	45	(109)	1,605
	Net income (loss)		$	4,484	104	79	(328)	4,339
Total identifiable assets			$	1,696,785	6,603	16,582	(8,646)	1,711,324

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CONDENSED CONSOLIDATED OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Cash flow from operating activities:
Net income	$ (3,529)	$ (4,339)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	1,597	1,359
Provision for loan losses	1,150	750
Gain on sale of premises and equipment and other real estate, net	(122)	(17)
Writedown of other real estate	85	0
Deferred income tax benefit	(859)	(384)
Income from equity-method investments, net	16	(323)
(Loss) on calls of securities, net	6	1
Net gain on sale of mortgage loans	(599)	(370)
Originations of loans held for sale	(51,160)	(35,031)
Proceeds from sale of loans held for sale	47,679	45,267
(Increase) decrease in other assets	(723)	(864)
Increase (decrease) in all other liabilities	944	(482)
Net cash provided by operating activities	1,543	14,245
Securities available-for-sale:
Proceeds from maturities and calls	18,465	6,865
Purchases	(11,929)	(7,869)
Securities held to maturity:
Proceeds from maturities and calls	6,208	4,523
Purchases	(4,828)	(9,154)
Loan principal collections in excess of originations, net	(65,470)	23,285
Purchase of premises and equipment, net	(578)	(636)
Purchases of FRB and FHLB stock, net	0	(102)
Investment in equity-method investments	(209)	(3)
Proceeds from sale of other real estate	1,505	455
Net cash provided (used) by investing activities	(56,836)	17,364
Net Cash Provided by (Used in) Financing Activities [Abstract]
Net increase in demand, savings and money market deposits	40,015	62,774
Net decrease in time deposits	(3,100)	(13,204)
Principal repayments of term borrowings	0	(330)
Proceeds from sale of treasury stock	0	0
Payments to acquire treasury stock	0	(19)
Proceeds from issuance of treasury stock under stock option plan	0	0
Tax benefit from stock option exercise	0	0
Change in Noncontrolling Interests, net	42	0
Dividends paid	(2,831)	(2,691)
Net cash provided by financing activities	34,126	46,530
Net increase in cash and cash equivalents	(21,167)	78,139
Cash and cash equivalents - beginning of period	126,740	138,229
Cash and cash equivalents - end of period	105,573	216,368
Supplemental Cash Flow Information [Abstract]
Interest paid	2,213	3,567
Income taxes paid	151	208
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]
Real estate acquired in settlement of loans	$ 558	$ 0

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Statement of Financial Position [Abstract]
Held-to-maturity fair value	$ 163,121	$ 160,401
Preferred stock par value	$ 0.01
Preferred stock, authorized shares	4,000,000
Preferred stock, issued shares	0
Common stock, par value	$ 20	$ 20
Common stock, authorized	16,000,000	16,000,000
Common stock, shares issued	1,946,496	1,946,496
Treasury stock, shares	58,497	57,748

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Fair Values of Financial Instruments

3 Months Ended

Mar. 31, 2012

Fair Values of Financial Instruments [Abstract]

Fair Values of Financial Instruments

(10) Fair Values of Financial Instruments

Current accounting pronouncements require disclosure of the estimated fair value of financial instruments. Fair value is generally defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly, non-distressed sale between market participants at the measurement date. With the exception of certain marketable securities and one-to-four-family residential mortgage loans originated for sale, the Company's financial instruments are not readily marketable and market prices do not exist. The Company, in attempting to comply with accounting disclosure pronouncements, has not attempted to market its financial instruments to potential buyers, if any exist. Since negotiated prices in illiquid markets depend upon the then present motivations of the buyer and seller, it is reasonable to assume that actual sales prices could vary widely from any estimate of fair value made without the benefit of negotiations. Additionally, changes in market interest rates can dramatically impact the value of financial instruments in a short period of time. Finally, the Company expects to retain substantially all assets and liabilities measured at fair value to their maturity or call date. Accordingly, the fair values disclosed herein are unlikely to represent the instruments' liquidation values, and do not, with the exception of securities, consider exit costs, since they cannot be reasonably estimated by management.

Accounting principles establish a three-level valuation hierarchy for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows.

• Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
• Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
• Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Cash and Equivalents

For these short-term instruments that generally mature in 90 days or less, or carry a market rate of interest, the carrying value approximates fair value.

Securities

Loans

Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by interest type such as floating, adjustable, and fixed-rate, and by portfolios such as commercial, mortgage, and consumer.

The fair value of performing loans is calculated by discounting scheduled cash flows through the loans' estimated maturity using estimated market discount rates that reflect the credit and interest rate risk inherent in the loan category. The estimate of maturity is based on the average maturity for each loan classification.

Delinquent loans (not in foreclosure) are valued using the method noted above, and also consider the fair value of collateral for collateral-dependent loans. While credit risk is a component of the discount rate used to value loans, delinquent loans are presumed to possess additional risk. Therefore, the calculated fair value of loans is reduced by the allowance for loan losses.

The fair value of loans held for sale is estimated based on outstanding investor commitments or in the absence of such commitments, is based on current yield requirements or quoted market prices.

Loan Servicing Assets

Fair value is determined through estimates provided by a third party. To estimate the fair value, the third party considers market prices for similar assets and the present value of expected future cash flows associated with the servicing assets calculated using assumptions that market participants would use in estimating future servicing income and expense. Such assumptions include estimates of the cost of servicing loans, loan default rates, an appropriate discount rate, and prepayment speeds. The key economic assumptions used to determine the fair value of mortgage servicing rights at March 31,2012and 2011, and the sensitivity of such values to changes in those assumptions are summarized in the 2011 Annual Report and are substantially unchanged.

Deposits

The fair value of demand deposits, savings accounts, and money market accounts is the amount payable on demand at the reporting date. The fair value of fixed maturity time deposits is estimated using a discounted cash flow approach that applies current market rates to a schedule of aggregated expected maturities of time deposits.

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Document Entity Information (USD $)	3 Months Ended
	Mar. 31, 2012	Jul. 24, 2011
Document Entity Information [Abstract]
Document Type	10-Q
Document period end date	Mar. 31, 2012
Amendment flag	false
Document Period Focus	Q2
Document Fiscal Year Focus	2012
Current fiscal year end date	--12-31
Entity central index key	0000759458
Entity current reporting status	Yes
Entity filer category	Accelerated Filer
Entity registrant name	Canandaigua National Corporation
Entity voluntary filers	No
Entity well known seasoned issuer	No
Entity common stock shares outstanding		1,887,154
Entity public float	$ 167,341,000

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Fair Values Measurements

3 Months Ended

Mar. 31, 2012

Fair Values Mesurements [Abstract]

Fair Values Measurements

(11) Fair Values Measurements

The following table presents for each of the fair-value hierarchy levels the Company's assets and liabilities that are measured at fair value on a recurring and non-recurring basis at March 31,2012, by caption on the Condensed Consolidated Balance Sheet (dollars in thousands).

							Internal models	Internal models
						Quoted market	with significant	with significant	Total carrying
						prices in active	observable market	unobservable market	value in the
						markets	parameters	parameters	Consolidated
						(Level 1)	(Level 2)	(Level 3)	Balance Sheet
Measured on a recurring basis:
	Assets
		Securities available-for-sale:
			U.S. Treasury		$	502	-	-	502
			U.S. government sponsored
				enterprise obligations		-	51,303	-	51,303
			State and municipal obligation			-	53,216	-	53,216
			All other			-	2,212	97	2,309
				Total assets	$	502	106,731	97	107,330
	Liabilities
		Interest rate swap agreement			$	-	3,313	-	3,313
		Letters of credit				-	217	-	217
				Total liabilities	$	-	3,530	-	3,530
Measured on a non-recurring basis:
	Assets
		Loans
			Loans-held-for-sale		$	-	11,636	-	11,636
			Collateral dependent impaired loans			-	-	3,929	3,929
			Other real estate owned			-	-	3,127	3,127
			Loan servicing assets			-	-	2,600	2,600
				Total assets	$	-	11,636	9,656	21,292

The following table shows a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three-monthperiod ended March 31, 2012(in thousands).

		Three months ended
		March 31, 2012
Securities available for sale, beginning of period	$	799
Securities transferred to Level 2 during period		(730)
Unrealized gain included in other comprehensive income		28
Securities available for sale, end of period	$	97

The following table presents for each of the fair-value hierarchy levels the Company's assets and liabilities that were measured at fair value on a recurring and non-recurring basis at December 31, 2011, by caption on the Consolidated Balance Sheet (dollars in thousands).

							Internal models	Internal models
						Quoted market	with significant	with significant	Total carrying
						prices in active	observable market	unobservable market	value in the
						markets	parameters	parameters	Consolidated
						(Level 1)	(Level 2)	(Level 3)	Balance Sheet
Measured on a recurring basis:
	Assets
		Securities available-for-sale:
			U.S. Treasury		$	502	-	-	502
			U.S. government sponsored
				enterprise obligations		-	56,125	-	56,125
			State and municipal obligation			-	55,425	-	55,425
			All other			-	1,407	799	2,206
				Total assets	$	502	112,957	799	114,258
	Liabilities
		Interest rate swap agreement			$	-	4,415	-	4,415
		Letters of credit				-	233	-	233
				Total liabilities	$	-	4,648	-	4,648
Measured on a non-recurring basis:
	Assets
		Loans
			Loans-held-for-sale		$	-	7,556	-	7,556
			Collateral dependent impaired loans			-	-	2,453	2,453
		Other assets
			Other real estate owned			-	-	4,235	4,235
			Loan servicing assets			-	-	2,489	2,489
				Total assets	$	-	7,556	9,177	16,733

The following table shows a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three-month period ended March 31, 2011 (in thousands).

		Three months ended
		March 31, 2011
Securities available for sale, beginning of period	$	958
Unrealized gain included in other comprehensive income		37
Securities available for sale, end of period	$	995

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Interest income:
Loans, including fees	$ 16,450	$ 16,079
Securities	1,903	2,070
Federal funds sold	35	90
Other interest income	4	5
Total interest income	18,392	18,244
Interest expense:
Deposits	1,503	2,676
Borrowings	0	0
Junior subordinated debentures	696	745
Total interest expense	2,199	3,421
Net interest income	16,193	14,823
Provision for loan losses	1,150	750
Net interest income after provision for loan losses	15,043	14,073
Other income:
Service charges on deposit accounts	2,823	2,585
Trust and investment services income	3,810	3,099
Net gain on sale of mortgage loans	599	370
Loan servicing income, net	204	219
Loan-related fees	72	109
(Loss) on calls of securities, net	(6)	(1)
Other operating income	680	811
Total other income	8,182	7,192
Operating expenses:
Salaries and employee benefits	10,755	8,001
Occupancy, net	2,046	1,833
Technology and data processing	1,210	1,042
Professional and other services	926	907
Marketing and public relations	609	669
Office supplies, printing and postage	421	414
Intangible amortization	203	222
Other real estate operations	318	228
FDIC insurance	283	679
Other operating expenses	1,373	1,326
Total operating expenses	18,144	15,321
Income before income taxes	5,081	5,944
Income taxes	1,510	1,605
Net Income Attributable to Noncontrolling Interest and parent	3,571	4,339
Net Income (Loss) Attributable to Noncontrolling Interest	42	0
Net Income	$ 3,529	$ 4,339
Basic earnings per share	$ 1.87	$ 2.30
Diluted earnings per share	$ 1.83	$ 2.26

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Capital Changes

3 Months Ended

Mar. 31, 2012

Capital Changes [Abstract]

Capital Changes

(5)   Capital Changes

At a special meeting of the Company's shareholders held on September 14, 2011, the Company's shareholders approved (a) a 4-for-1 forward stock split of the Company's common stock (the “Stock Split”) and (b) a corresponding amendment to the Company's Certificate of Incorporation that would affect the stock split by increasing the Company's total number of authorized shares from 8,000,000 to 20,000,000 shares, increasing the authorized number of shares of common stock from 4,000,000to 16,000,000 shares, including changing the par value per share from $20.00 to $5.00, and implementing the Stock Split. The amendment to the Company's Certificate of Incorporation effecting the Stock Split was filed with New York State on September 20, 2011. All share data presented in the Company's financial statements and this Form 10-Q has been adjusted retroactively to reflect the Stock Split.

At the Company's April 2011 Annual Meeting, shareholders authorized a class of 4,000,000 shares of preferred stock, $.01 par value. No shares of preferred stock have been issued.

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Loan Servicing Assets

3 Months Ended

Mar. 31, 2012

Loan Servicing Assets [Abstract]

Loan Servicing Assets

(4)   Loan Servicing Assets

The Company services first-lien, residential loans for the Federal Home Loan Mortgage Company (FHLMC), also known as Freddie Mac, and certain commercial loans as lead participant. The associated servicing rights (assets) entitle the Company to a future stream of cash flows based on the outstanding principal balance of the loans and contractual servicing fees. Failure to service the loans in accordance with contractual requirements may lead to a termination of the servicing rights and the loss of future servicing fees.

The Company services all loans for FHLMC on a non-recourse basis; therefore, its credit risk is limited to temporary advances of funds to FHLMC, while FHLMC retains all credit risk associated with the loans. Commercial loans are serviced on a non- recourse basis, whereby the Company is subject to credit losses only to the extent of the proportionate share of the loan's principal balance owned. The Company's contract to sell loans to FHLMC and to the Federal Housing Administration (FHA) via third-parties contain certain representations and warranties that if not met by the Company would require the repurchase of such loans. The Company has not historically been subject to a material volume of repurchases.

Gross servicing fees earned by the Company for the three-monthperiods ended March 31,2012and 2011, respectively, amounted to $346,000 and $343,000. These fees are included in net mortgage servicing income on the statements of income.

The following table presents the changes in loan servicing assets for the three-monthperiods ended March 31,2012and 2011, respectively, as well as the estimated fair value of the assets at the beginning and end of the period (in thousands).

		2012				2011
				Estimated				Estimated
		Book		Fair		Book		Fair
		Value		Value		Value		Value
Balance at January 1,	$	2,489	$	3,244	$	2,222	$	3,418
Originations		254				155
Amortization		(143)				(124)
Balance at March 31,	$	2,600	$	3,280	$	2,253	$	3,465

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2012

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

				Three-months
				Ended March 31,
				2012		2011
Basic Earnings Per Share:
	Net income applicable to common shareholders			$	3,529		4,339
	Weighted average common shares outstanding				1,887,254		1,888,570
			Basic earnings per share	$	1.87		2.30
Diluted Earnings Per Share:
	Net income applicable to common shareholders			$	3,529		4,339
	Weighted average common shares outstanding				1,887,254		1,888,570
	Effect of assumed exercise of stock options				38,688		34,079
		Total			1,925,942		1,922,649
			Diluted earnings per share	$	1.83		2.26

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Accounting Pronouncements Implemented in Current Year

3 Months Ended

Mar. 31, 2012

Accounting Pronouncements Implemented in Current Year [Abstract]

Accounting Pronouncements Implemented in Current Year

(12) Accounting Pronouncements Implemented in the Current Year

We implemented the following Accounting Standards Updates (ASU) as of January 1, 2012 with no impact to our financial condition or results of operations. However, some footnote disclosures were revised:

ASU 2011-03. Reconsideration of Effective Control for Repurchase Agreements, issued April 2011. The main objective in developing this Update was to improve the accounting for repurchase agreements (repos) and other agreements that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. The amendments in this Update removed from the assessment of effective control (1) the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee, and (2) the collateral maintenance implementation guidance related to that criterion. Other criteria applicable to the assessment of effective control were not changed by the amendments in this Update. Since the Company does not currently engage in these types of transactions, the Update had no impact on the Company's financial condition or results of operations upon implementation.

ASU 2011-04 Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, issued May 2011. The amendments were intended to converge fair value measurement and disclosure guidance in U.S. GAAP with the guidance in the International Accounting Standards Board's concurrently issued IFRS 13, Fair Value Measurement. The amendments in ASU 2011-04 did not modify the requirements for when fair value measurements apply; rather, they generally represented clarifications on how to measure and disclose fair value under ASC 820, Fair Value Measurement. In implementing this ASU, we expanded relevant disclosures for fair values of financial instruments and fair value measurements.

ASU 2011-05 Presentation of Comprehensive Income, issued June 2011. The objective of this Update was to improve the comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. The amendments required that all non-owner changes in stockholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. We used the two statement report by including a consolidated statement of comprehensive income.

In ASU 2011-12 Deferral of the Effective Date for Amendments to the Presentation of Reclassification of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05, the FASB deferred the certain reporting requirements for reclassifications out of accumulated other comprehensive income on a components basis.

ASU 2011-08 Testing Goodwill for Impairment, issued September 2011. The objective of this Update was to simplify how entities, both public and non-public, test goodwill for impairment. The amendments in the Update permit an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The more-likely-than-not threshold is defined as having a likelihood of more than 50 percent. Previous guidance required an entity to test goodwill for impairment, on at least an annual basis, by comparing the fair value of a reporting unit with its carrying amount, including goodwill (step one). If the fair value of a reporting unit is less than its carrying amount, then the second step of the test must be performed to measure the amount of the impairment loss, if any. Under the amendments in this Update, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. Although this ASU became effective on January 1, 2012, we will not implement its provisions until the fourth quarter of 2012 when we perform our annual goodwill assessment.

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Segment Information

3 Months Ended

Mar. 31, 2012

Segment Information [Abstract]

Segment Information

(8)   Segment Information

The Company is organized into four reportable segments: the Company and its banking and Florida trust subsidiaries (Bank), CNB Mortgage Company (CNBM), Genesee Valley Trust Company (GVT), and WBI OBS Financial, LLC and its subsidiaries (OBS). These have been segmented due to differences in their distribution channels, the volatility of their earnings, and internal and external financial reporting requirements. The interim period reportable segment information for the three-month periods endedMarch 31,2012and 2011 follows (dollars in thousands).

Three months ended March 31,				2012
				Bank	CNBM	GVT	OBS	Intersegment	Total
Net interest income			$	16,193	2	3	-	(5)	16,193
Non-interest income				5,760	1,284	885	591	(338)	8,182
	Total revenues			21,953	1,286	888	591	(343)	24,375
Provision for loan losses				1,150	-	-	-	-	1,150
Intangible amortization				46	-	157	-	-	203
Other operating expenses				16,148	741	761	470	(179)	17,941
	Total expenses			17,344	741	918	470	(179)	19,294
		Income (loss) before tax		4,609	545	(30)	121	(164)	5,081
Income tax				1,510	215	(7)	-	(208)	1,510
	Net income attributable to noncontrolling interests
		and Canandaigua National Corporation		3,099	330	(23)	121	44	3,571
Less: Net income attributable to noncontrolling interests				-	-	-	42	-	42
	Net income attributable to
		Canandaigua National Corporation	$	3,099	330	(23)	79	44	3,529
Total identifiable assets			$	1,773,882	10,198	16,432	15,874	(17,004)	1,799,382

Three months ended March 31,				2011
				Bank	CNBM	GVT	Intersegment	Total
Net interest income			$	14,823	3	3	(6)	14,823
Non-interest income				6,022	736	1,037	(603)	7,192
	Total revenues			20,845	739	1,040	(609)	22,015
Provision for loan losses				750	-	-	-	750
Intangible amortization				50	-	172	-	222
Other operating expenses				13,956	571	744	(172)	15,099
	Total expenses			14,756	571	916	(172)	16,071
		Income (loss) before tax		6,089	168	124	(437)	5,944
Income tax				1,605	64	45	(109)	1,605
	Net income (loss)		$	4,484	104	79	(328)	4,339
Total identifiable assets			$	1,696,785	6,603	16,582	(8,646)	1,711,324

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Dividend

3 Months Ended

Mar. 31, 2012

Dividend [Abstract]

Dividend

(6)   Dividend

On January 11, 2012, the Board of Directors declared a semi-annual $1.50 per share dividend on common stock to shareholders of record on January21, 2012. The dividend was paid on February 1, 2012.  

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Earnings Per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share

(7)   Earnings Per Share

Basic earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of shares outstanding during the period. Diluted earnings per share includes the maximum dilutive effect of stock issuable upon conversion of stock options. Calculations for the three-month periods ended March 31,2012and 2011 follow (dollars in thousands, except per share data):

				Three-months
				Ended March 31,
				2012		2011
Basic Earnings Per Share:
	Net income applicable to common shareholders			$	3,529		4,339
	Weighted average common shares outstanding				1,887,254		1,888,570
			Basic earnings per share	$	1.87		2.30
Diluted Earnings Per Share:
	Net income applicable to common shareholders			$	3,529		4,339
	Weighted average common shares outstanding				1,887,254		1,888,570
	Effect of assumed exercise of stock options				38,688		34,079
		Total			1,925,942		1,922,649
			Diluted earnings per share	$	1.83		2.26

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Interest Rate Swap Agreement

3 Months Ended

Mar. 31, 2012

Interest Rate Swap Agreement [Abstract]

Interest Rate Swap Agreement

(9)Interest Rate Swap Agreements

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Loans and Allowances for Loan Losses 2 (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Summary Of Changes In Allowance For Loan Losses [Line Items]
Balance at the beginning of period	$ 16,095
Loans charged off	(710)	(705)
Recoveries of loans charged off	306	230
Provision for loan losses	1,150	750
Balance at the end of period	16,841
Amount for loans collectively evaluated for impairment	839
Commercial and industrial
Summary Of Changes In Allowance For Loan Losses [Line Items]
Balance at the beginning of period	6,393	6,364
Loans charged off	191	155
Recoveries of loans charged off	38	15
Provision for loan losses	(1,362)	(348)
Balance at the end of period	4,878	5,876
Amount for loans individually evaluated for impairment	1,079	705
Amount for loans collectively evaluated for impairment	3,799	5,171
Loans individually evaluated for impairment	3,668	1,508
Loans collectively evaluated for impairment	194,450	197,067
Commercial mortgages
Summary Of Changes In Allowance For Loan Losses [Line Items]
Balance at the beginning of period	994	1,371
Loans charged off	0	0
Recoveries of loans charged off	2	0
Provision for loan losses	286	300
Balance at the end of period	1,282	1,671
Amount for loans individually evaluated for impairment	443	80
Amount for loans collectively evaluated for impairment		1,591
Loans individually evaluated for impairment	11,545	1,449
Loans collectively evaluated for impairment	481,912	431,604
Residential Mortgages - first position
Summary Of Changes In Allowance For Loan Losses [Line Items]
Balance at the beginning of period	1,786	1,304
Loans charged off	75	0
Recoveries of loans charged off	6	0
Provision for loan losses	190	362
Balance at the end of period	1,907	1,666
Amount for loans individually evaluated for impairment	0	101
Amount for loans collectively evaluated for impairment	1,907	1,565
Loans individually evaluated for impairment	0	669
Loans collectively evaluated for impairment	262,770	234,606
Residential Mortgages - Second position
Summary Of Changes In Allowance For Loan Losses [Line Items]
Balance at the beginning of period	521	563
Loans charged off	3	0
Recoveries of loans charged off	2	1
Provision for loan losses	14	23
Balance at the end of period	534	587
Amount for loans individually evaluated for impairment	0	47
Amount for loans collectively evaluated for impairment	534	540
Loans individually evaluated for impairment	29	54
Loans collectively evaluated for impairment	100,339	93,904
Consumer - Indirect
Summary Of Changes In Allowance For Loan Losses [Line Items]
Balance at the beginning of period	4,839	4,196
Loans charged off	283	402
Recoveries of loans charged off	175	141
Provision for loan losses	1,130	206
Balance at the end of period	5,861	4,141
Amount for loans individually evaluated for impairment	0	0
Amount for loans collectively evaluated for impairment	5,861	4,141
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	261,619	173,412
Consumer Other
Summary Of Changes In Allowance For Loan Losses [Line Items]
Balance at the beginning of period	916	1,155
Loans charged off	158	148
Recoveries of loans charged off	83	73
Provision for loan losses	381	(269)
Balance at the end of period	1,222	811
Amount for loans individually evaluated for impairment	0	0
Amount for loans collectively evaluated for impairment	1,222	811
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	24,087	27,170
Loans-held-for-sale
Summary Of Changes In Allowance For Loan Losses [Line Items]
Balance at the beginning of period	0	0
Loans charged off	0	0
Recoveries of loans charged off	0	0
Provision for loan losses	0	0
Balance at the end of period	0	0
Amount for loans individually evaluated for impairment	0	0
Amount for loans collectively evaluated for impairment	0	0
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	11,636	4,247
Unallocated
Summary Of Changes In Allowance For Loan Losses [Line Items]
Balance at the beginning of period	646	682
Loans charged off	0	0
Recoveries of loans charged off	0	0
Provision for loan losses	511	476
Balance at the end of period	1,157	1,158
Amount for loans individually evaluated for impairment	0	0
Amount for loans collectively evaluated for impairment	1,157	1,158
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	$ 9,054	$ 5,540

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Securities (Tables)

3 Months Ended

Mar. 31, 2012

Securities [Abstract]

Schedule of Available-for-sale Securities

				March 31, 2012
					Gross Unrealized
				Amortized			Fair
				Cost	Gains	Losses	Value
Securities Available for Sale:
	U.S. Treasury		$	502	-	-	502
	U.S. government sponsored enterprise obligations			51,149	267	(113)	51,303
	State and municipal obligations			51,605	1,627	(16)	53,216
	Corporate obligations (1)			1,094	2	(269)	827
	Equity securities			1,292	190	-	1,482
		Total Securities Available for Sale	$	105,642	2,086	(398)	107,330
		(1)Amortized cost includes cumulative $360,000 write-down prior to 2010 for other-than-temporary impairment.

				December 31, 2011
					Gross Unrealized
				Amortized			Fair
				Cost	Gains	Losses		Value
Securities Available for Sale:
	U.S. Treasury		$	502	-	-		502
	U.S. government sponsored enterprise obligations			55,766	377	(18)		56,125
	State and municipal obligations			53,531	1,917	(23)		55,425
	Corporate obligations			1,093	2	(296)		799
	Equity securities			1,295	112	-		1,407
		Total securities Available for Sale	$	112,187	2,408	(337)		114,258
		(1)Amortized cost includes cumulative write-downs of $360,000 prior to 2010 for other-than-temporary impairment.

Schedule of Held-to-maturity Securities

Securities Held to Maturity:
	U.S. government sponsored enterprise obligations		$	7	2	-	9
	State and municipal obligations			164,629	4,520	(182)	168,967
	Corporate obligations			828	305	-	1,133
		Total Securities Held to Maturity	$	165,464	4,827	(182)	170,109

Securities Held to Maturity:
	U.S. government sponsored enterprise obligations		$	1,007	1	-	1,008
	State and municipal obligations			165,348	5,113	(135)	170,326
	Corporate obligations			870	313	-	1,183
		Total Securities Held to Maturity	$	167,225	5,427	(135)	172,517

Schedule of the amortized cost and fair value of debt securities by years to maturity

		Available for Sale		Held to Maturity
		Amortized		Amortized
		Cost (1)	Fair Value	Cost	Fair Value
Years
Under 1	$	16,011	16,165	28,646	28,895
1 to 5		35,050	36,529	118,385	122,171
5 to 10		48,177	48,268	17,588	17,890
10 and over		5,112	4,886	845	1,153
Total	$	104,350	105,848	165,464	170,109
(1)Amortized cost includes a cumulative $360,000 write-down prior to 2010 for other-than-temporary impairment.

				Less than 12 months		Over 12 months		Total
				Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
Securities Available for Sale:				Value	Losses	Value	Losses	Value	Losses
	U.S. government sponsored enterprise obligations		$	21,965	113	-	-	21,965	113
	State and municipal obligations			309	2	1,268	14	1,577	16
	Corporate obligations			-	-	1,056	269	1,056	269
		Total temporarily impaired securities	$	22,274	115	2,324	283	24,598	398

				Less than 12 months		Over 12 months		Total
			Fair		Unrealized	Fair	Unrealized	Fair	Unrealized
Securities Available for Sale:				Value	Losses	Value	Losses	Value	Losses
	U.S. government sponsored enterprise obligations		$	7,610	18	-	-	7,610	18
	State and municipal obligations			355	3	996	20	1,351	23
	Corporate obligations			-	-	759	296	759	296
		Total temporarily impaired securities	$	7,965	21	1,755	316	9,720	337

Schedule of the fair value of securities with gross unrealized losses

Securities Held to Maturity:
	State and municipal obligations		$	15,819	121	4,572	61	20,391	182
		Total temporarily impaired securities	$	15,819	121	4,572	61	20,391	182

Securities Held to Maturity:
	State and municipal obligations		$	7,886	80	4,647	55	12,533	135
		Total temporarily impaired securities	$	7,886	80	4,647	55	12,533	135

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Fair Values Mesurements (Tables)

3 Months Ended

Mar. 31, 2012

Fair Values Mesurements [Abstract]

Fair Value Asset And Liabilities Measured On Recurring And Nonrecurring Basis [Table Text Block]

							Internal models	Internal models
						Quoted market	with significant	with significant	Total carrying
						prices in active	observable market	unobservable market	value in the
						markets	parameters	parameters	Consolidated
						(Level 1)	(Level 2)	(Level 3)	Balance Sheet
Measured on a recurring basis:
	Assets
		Securities available-for-sale:
			U.S. Treasury		$	502	-	-	502
			U.S. government sponsored
				enterprise obligations		-	51,303	-	51,303
			State and municipal obligation			-	53,216	-	53,216
			All other			-	2,212	97	2,309
				Total assets	$	502	106,731	97	107,330
	Liabilities
		Interest rate swap agreement			$	-	3,313	-	3,313
		Letters of credit				-	217	-	217
				Total liabilities	$	-	3,530	-	3,530
Measured on a non-recurring basis:
	Assets
		Loans
			Loans-held-for-sale		$	-	11,636	-	11,636
			Collateral dependent impaired loans			-	-	3,929	3,929
			Other real estate owned			-	-	3,127	3,127
			Loan servicing assets			-	-	2,600	2,600
				Total assets	$	-	11,636	9,656	21,292

		Three months ended
		March 31, 2012
Securities available for sale, beginning of period	$	799
Securities transferred to Level 2 during period		(730)
Unrealized gain included in other comprehensive income		28
Securities available for sale, end of period	$	97

							Internal models	Internal models
						Quoted market	with significant	with significant	Total carrying
						prices in active	observable market	unobservable market	value in the
						markets	parameters	parameters	Consolidated
						(Level 1)	(Level 2)	(Level 3)	Balance Sheet
Measured on a recurring basis:
	Assets
		Securities available-for-sale:
			U.S. Treasury		$	502	-	-	502
			U.S. government sponsored
				enterprise obligations		-	56,125	-	56,125
			State and municipal obligation			-	55,425	-	55,425
			All other			-	1,407	799	2,206
				Total assets	$	502	112,957	799	114,258
	Liabilities
		Interest rate swap agreement			$	-	4,415	-	4,415
		Letters of credit				-	233	-	233
				Total liabilities	$	-	4,648	-	4,648
Measured on a non-recurring basis:
	Assets
		Loans
			Loans-held-for-sale		$	-	7,556	-	7,556
			Collateral dependent impaired loans			-	-	2,453	2,453
		Other assets
			Other real estate owned			-	-	4,235	4,235
			Loan servicing assets			-	-	2,489	2,489
				Total assets	$	-	7,556	9,177	16,733

		Three months ended
		March 31, 2011
Securities available for sale, beginning of period	$	958
Unrealized gain included in other comprehensive income		37
Securities available for sale, end of period	$	995

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Segment Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011
Segment Reporting Information [Line Items]
Net interest income	$ 16,193	$ 14,823
Total other income	8,182	7,192
Total revenues	24,375
Provision for loan losses	1,150	750
Intangible amortization	203	222
Other operating expenses	17,941
Total expenses	19,294
Income before income taxes	5,081	5,944
Income taxes	1,510	1,605
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	3,571	4,339
Net Income (Loss) Attributable to Noncontrolling Interest	42	0
Net income attributable to Canandaigua National Corporation	3,529
Total Assets	1,799,382		1,761,470
Bank [Member]
Segment Reporting Information [Line Items]
Net interest income	16,193	14,823
Total other income	5,760	6,022
Total revenues	21,953	20,845
Provision for loan losses	1,150	750
Intangible amortization	46	50
Other operating expenses	16,148	13,956
Total expenses	17,344	14,756
Income before income taxes	4,609	6,089
Income taxes	1,510	1,605
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	3,099
Net Income (Loss) Attributable to Noncontrolling Interest	0
Net income attributable to Canandaigua National Corporation	3,099	4,484
Total Assets	1,773,882	1,696,785
CNBM [Member]
Segment Reporting Information [Line Items]
Net interest income	2	3
Total other income	1,284	736
Total revenues	1,286	739
Provision for loan losses	0	0
Intangible amortization	0	0
Other operating expenses	741	571
Total expenses	741	571
Income before income taxes	545	168
Income taxes	215	64
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	330
Net Income (Loss) Attributable to Noncontrolling Interest	0
Net income attributable to Canandaigua National Corporation	330	104
Total Assets	10,198	6,603
GVT [Member]
Segment Reporting Information [Line Items]
Net interest income	3	3
Total other income	885	1,037
Total revenues	888	1,040
Provision for loan losses	0	0
Intangible amortization	157	172
Other operating expenses	761	744
Total expenses	918	916
Income before income taxes	(30)	124
Income taxes	(7)	45
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(23)
Net Income (Loss) Attributable to Noncontrolling Interest	0
Net income attributable to Canandaigua National Corporation	(23)	79
Total Assets	16,432	16,582
OBS [Member]
Segment Reporting Information [Line Items]
Net interest income	0
Total other income	591
Total revenues	591
Provision for loan losses	0
Intangible amortization	0
Other operating expenses	470
Total expenses	470
Income before income taxes	121
Income taxes	0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	121
Net Income (Loss) Attributable to Noncontrolling Interest	42
Net income attributable to Canandaigua National Corporation	79
Total Assets	15,874
Intersegment [Member]
Segment Reporting Information [Line Items]
Net interest income	(5)	(6)
Total other income	(338)	(603)
Total revenues	(343)	(609)
Provision for loan losses	0	0
Intangible amortization	0	0
Other operating expenses	(179)	(172)
Total expenses	(179)	(172)
Income before income taxes	(164)	(437)
Income taxes	(208)	(109)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	44
Net Income (Loss) Attributable to Noncontrolling Interest	0
Net income attributable to Canandaigua National Corporation	44	(328)
Total Assets	$ (17,004)	$ (8,646)

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax [Abstract]
Net income	$ 3,571,000	$ 4,339
Other comprensive income:
Change in fair value of interest rate swaps	672,000	703,000
Change in unrealized gain on securities available for sale	(219,000)	(163,000)
Plus reclassification adjustment for realized gains and losses included in net income on called securities	38,000	(13,000)
Other comprehensive income	415,000	553,000
Total other comprehensive income	3,986,000	4,892,000
Comprehensive income attributable to the noncontrolling interest	42,000	0
Comprehensive income attributable to the Company	$ 3,944,000	$ 4,892,000

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Loans and Allowances for Loan Losses

3 Months Ended

Mar. 31, 2012

Loans and Allowances for Loan Losses [Abstract]

Loans and Allowances for Loan Losses

(3) Loans and Allowance for Loan Losses

Loans

The Company's market area is generally OntarioCounty and Monroe County of New York State. Substantially all loans are made in its market area. Accordingly, the ultimate collectability of a substantial portion of the Company's loan portfolio is susceptible to changes in the economic conditions in this area. The Company's concentrations of credit risk are as disclosed in the following table of loan classifications. The concentrations of credit risk in related loan commitments and letters of credit parallel the loan classifications reflected. Other than general economic risks, management is not aware of any material concentrations of credit risk to any industry or individual borrower.

The major classifications of loans at March 31,2012and December 31, 2011, follow (in thousands), along with a description of their underwriting and risk characteristics:

			2012	2011
Commercial and industrial		$	198,118	198,744
Mortgages:
	Commercial		493,457	467,413
	Residential - first lien		262,770	256,173
	Residential - second lien		100,368	101,877
Consumer:
	Automobile - indirect		261,619	227,541
	Other		24,087	25,583
Loans held for sale			11,636	7,556
	Total loans		1,352,055	1,284,887
Plus - Net deferred loan costs			9,054	7,634
Less - Allowance for loan losses			(16,841)	(16,095)
	Loans - net	$	1,344,268	1,276,426

Allowance for Loan Losses

A summary of the changes in the allowance for loan losses follows (in thousands). Notwithstanding the estimated allocations set forth in any table, the entirety of the allowance is available to absorb losses in any portfolio:

		For the Three-Month Periods
		Ended March 31,
		2012	2011
Balance at the beginning of period	$	16,095	15,635
Loans charged off		(710)	(705)
Recoveries of loans charged off		306	230
Provision charged to operations		1,150	750
Balance at end of period	$	16,841	15,910

The following tables present an analysis of the allowance for loan losses by loan type, including a summary of the loan types individually and collectively evaluated for impairment as of March 31,2012and 2011(in thousands):

				Residential	Residential
				mortgage -	mortgage -			Loans
		Commercial	Commercial	first	second	Consumer -	Consumer -	held for
		and industrial	mortgage	position	position	indirect	other	sale	Unallocated	Total
Beginning Balance	$	6,393	994	1,786	521	4,839	916	-	646	16,095
Charge-offs		(191)	-	(75)	(3)	(283)	(158)	-	-	(710)
Recoveries		38	2	6	2	175	83	-	-	306
Provision		(1,362)	286	190	14	1,130	381	-	511	1,150
Ending Balance	$	4,878	1,282	1,907	534	5,861	1,222	-	1,157	16,841
of which:
Amount for loans individually
evaluated for impairment	$	1,079	443	-	-	-	-	-	-	1,522
Amount for loans collectively
evaluated for impairment	$	3,799	839	1,907	534	5,861	1,222	-	1,157	15,319
Balance of loans individually
evaluated for impairment	$	3,668	11,545	-	29	-	-	-	-	15,242
Balance of loans collectively
evaluated for impairment	$	194,450	481,912	262,770	100,339	261,619	24,087	11,636	9,054	1,345,867

The balance in the allowance for loan losses increased to $16.8 million at March 31, 2012 compared to $16.1 million December 31, 2011, and from $15.9 million at March 31, 2011. In determining the level of allowance necessary, we considered a number of factors. The most significant factor in the first quarter of 2012 was growth in the portfolio, which amounted to an annualized rate of 21% for the three-month period from December 31, 2011, and 16% for the twelve-month period from March 31, 2011. However, the balance in the allowance did not increase by these percentages due to specific portfolio factors, which include, (a) a reduction in the loss factor applied to Substandard-rated Commercial and Industrial Loans, (b) an increase in reserves for impaired loans, (c) a decline in annualized net charge-offs, and (d) a decline in the ratio of non-performing loans to total loans. Economic conditions were also considered in our determination of the allowance. Given improvements we have seen in the economy, we have reduced our economic qualitative factors.

More specifically, since December 31, 2011, we have reduced the allocated allowance to Commercial and Industrial loans as discussed above. Increases in allocations for the other major loan categories occurred principally due to loan portfolio growth, while the unallocated portion has increased principally due to a combination of factors related to changes in the portfolio and related quantitative and qualitative factors.

In monitoring the credit quality of the portfolio, management applies a credit quality indicator to substantially all commercial loans. These quality indicators, as more fully described in the 2011 Annual Report, range from one through eight in increasing risk of loss. These ratings are used as inputs to the calculation of the allowance for loan losses. Loans rated 1 through 4 are generally allocated a lesser percentage allocation in the allowance for loan losses than loans rated from 5 through 8. Residential Mortgage Loans are generally rated 9, unless they are used to partially collateralize commercial loans, in which case they carry the rating of the respective commercial loan relationship, or if management wishes to recognize a well defined weakness or loss potential to more accurately reflect credit risk. Unrated loans are allocated a percentage of the allowance for loan losses on a pooled-basis.

The following tables present the loan portfolio as of March 31,2012 and December 31, 2011 by credit quality indicator (in thousands). Except for loans in the 9 and unrated categories, credit quality indicators are reassessed for each applicable loan at least annually, generally upon the anniversary of the loan's origination or receipt and analysis of the borrower's financial statements, when applicable, or in the event that information becomes available that would cause us to re-evaluate.

Loans in category 9 and unrated are evaluated for credit quality after originationbased upon delinquency status. (See Aging Analysis table).

Credit Quality Indicator Analysis as of March 31, 2012
				Residential	Residential
				mortgage -	mortgage -			Loans	Deferred
		Commercial	Commercial	first	second	Consumer -	Consumer -	held for	Fees and
		and industrial	mortgage	position	position	indirect	other	sale	Costs	Total
1-Superior	$	10,377	-	-	-	-	816	-	-	11,193
2-Good		8,268	26,459	1,656	3,172	-	1,084	-	-	40,639
3-Satisfactory		69,249	195,085	1,280	564	-	-	-	-	266,178
4-Watch		43,078	209,335	4,834	106	-	-	-	-	257,353
5-Special Mention		12,041	6,289	1,009	-	-	-	-	-	19,339
6-Substandard		22,395	31,573	4,263	225	-	-	-	-	58,456
7-Doubtful		-	-	7	-	-	-	-	-	7
Subtotal	$	165,408	468,741	13,049	4,067	-	1,900	-	-	653,165
9 and not rated		32,710	24,716	249,721	96,301	261,619	22,187	11,636	9,054	707,944
Total	$	198,118	493,457	262,770	100,368	261,619	24,087	11,636	9,054	1,361,109

Credit Quality Indicator Analysis as of December 31, 2011
				Residential	Residential
				mortgage -	mortgage -			Loans	Deferred
		Commercial	Commercial	first	second	Consumer -	Consumer -	held for	Fees and
		and industrial	mortgage	position	position	indirect	other	sale	Costs	Total
1-Superior	$	9,814	105	-	-	-	913	-	-	10,832
2-Good		8,826	26,195	1,718	2,560	-	-	-	-	39,299
3 Satisfactory		68,246	177,882	1,409	576	-	-	-	-	248,113
4 Watch		43,928	210,901	6,045	269	-	-	-	-	261,143
5 Special Mention		7,864	4,645	1,127	-	-	-	-	-	13,636
6 Substandard		29,440	30,018	4,496	453	-	100	-	-	64,507
7 Doubtful		-	-	-	7	-	-	-	-	7
8 Loss		-	-	-	-	-	-	-	-	-
Subtotal	$	168,118	449,746	14,795	3,865	-	1,013	-	-	637,537
9 and not rated		30,626	17,667	241,378	98,012	227,541	24,570	7,556	7,634	654,984
Total	$	198,744	467,413	256,173	101,877	227,541	25,583	7,556	7,634	1,292,521

A summary of information regarding nonaccruing loans and other nonperforming assets as of March 31,2012, December 31, 2011, and March 31,2011 follows (in thousands):

			March 31,		December 31,		March 31,
				2012		2011		2011
Accruing loans 90 days or more delinquent			$	554		969		208
Nonaccruing loans				19,358		17,307		22,760
		Total nonperforming loans		19,912		18,276		22,968
Other real estate owned				3,562		4,632		3,836
	(less write-down of other real estate owned)			(435)		(397)		(551)
		Total nonperforming assets	$	23,039		22,511		26,253

Thefollowing tables present, as of March 31,2012and December 31, 2011, additional details about the loan portfolio in the form of an aging analysis of the loan portfolio. Amounts exclude deferred fees and costs (in thousands).

Aging Analysis as of March 31, 2012
					90 Days				> 90 Days
			30-59 Days	60-89 Days	Or	Total		Total	and	Non-Accrual
			Past Due	Past Due	Greater	Past Due	Current	Loans	Accruing	Loans
Commercial and industrial		$	335	250	3,841	4,426	193,692	198,118	88	3,753
Commercial mortgages			1,497	1,326	11,572	14,395	479,062	493,457	-	11,572
Residential - first lien			3,084	1,415	4,249	8,748	254,022	262,770	390	3,859
Residential - junior lien			341	90	174	605	99,763	100,368	-	174
Consumer:
	Automobile - Indirect		1,310	726	61	2,097	259,522	261,619	61	-
	Other		204	21	15	240	23,847	24,087	15	-
Loans held-for-sale			-	-	-	-	11,636	11,636	-	-
		$	6,771	3,828	19,912	30,511	1,321,544	1,352,055	554	19,358

Aging Analysis as of December 31, 2011
					90 Days				> 90 Days
			30-59 Days	60-89 Days	Or	Total		Total	and	Non-Accrual
			Past Due	Past Due	Greater	Past Due	Current	Loans	Accruing	Loans
Commercial and industrial		$	395	432	3,992	4,819	193,925	198,744	75	3,917
Commercial mortgages			2,184	-	9,078	11,262	456,151	467,413	-	9,078
Residential - first lien			633	55	4,453	5,141	251,032	256,173	652	3,801
Residential - junior lien			444	91	419	954	100,923	101,877	8	411
Consumer:
	Automobile - indirect		1,766	653	165	2,584	224,957	227,541	165	-
	Other		257	88	169	514	25,069	25,583	69	100
Loans held-for-sale			-	-	-	-	7,556	7,556	-	-
Total		$	5,679	1,319	18,276	25,274	1,259,613	1,284,887	969	17,307

A summary of information regarding impaired loans follows (in thousands):

		As of and for	As of and for		As of and for
	the three-month		the year	the three-month
		period ended	ended		period ended
		March 31,	December 31,		March 31,
		2012	2011		2011
Recorded investment at period end	$	19,358	17,307		22,760
Impaired loans with specific related allowance at period end	$	3,929	2,453		3,680
Amount of specific related allowance at period end	$	1,522	1,138		933
Average investment during the period	$	19,545	20,394		22,069
Interest income recognized on a cash basis during the period	$	103	127		-

The details of impaired loans as of March 31,2012and December 31, 2011 follow (in thousands)

March 31,2012

					Unpaid	Specific	Average	Interest
				Recorded	principal	Related	Recorded	income
				Investment	balance	Allowance	Investment	Recognized
With no specific allowance
	Commercial and industrial		$	1,640	2,151	-	1,811	-
	Commercial mortgage			9,756	11,158	-	9,010	81
	Residential mortgage - first position			3,859	4,042	-	4,331	20
	Residential mortgage - second position			174	213	-	420	-
	Consumer - other			-	-	-	76	2
		Subtotal		15,429	17,564	-	15,648	103
With specific allowance
	Commercial and industrial			2,113	2,249	1,079	2,503	-
	Commercial mortgage			1,816	1,936	443	1,394	-
		Subtotal		3,929	4,185	1,522	3,897	-
		Total	$	19,358	21,749	1,522	19,545	103
Summary by portfolio:
Commercial			$	15,325	17,494	1,522	14,718	81
Residential				4,033	4,255	-	4,751	20
Consumer and other				-	-	-	76	2
		Total	$	19,358	21,749	1,522	19,545	103

December 31, 2011
					Unpaid	Specific	Average	Interest
				Recorded	principal	Related	Recorded	income
With no specific allowance				Investment	balance	Allowance	Investment	Recognized
	Commercial and industrial		$	2,541	3,048	-	1,401	-
	Commercial mortgage			8,001	9,440	-	6,578	114
	Residential mortgage - first position			3,801	3,968	-	3,366	13
	Residential mortgage - second position			411	439	-	390	-
	Consumer - other			100	102	-	76	-
		Subtotal		14,854	16,997	-	11,811	127
With specific allowance
	Commercial and industrial			1,376	1,454	895	3,079	-
	Commercial mortgage			1,077	1,153	243	3,988	-
	Residential mortgage - first position			-	-	-	1,265	-
	Residential mortgage - second position			-	-	-	201	-
		Subtotal		2,453	2,607	1,138	8,583	-
		Total	$	17,307	19,604	1,138	20,394	127
Summary by portfolio:
	Commercial		$	12,995	15,095	1,138	15,046	114
	Residential			4,212	4,407	-	5,222	13
	Consumer and other			100	102	-	126	-
		Total	$	17,307	19,604	1,138	20,394	127

Troubled Debt Restructurings

In the process of resolving nonperforming loans, we may choose to restructure the contractual terms of certain loans and attempt to work out alternative payment schedules with the borrower in order to avoid foreclosure of collateral. Any loans that are modified are evaluated to determine if they are "troubled debt restructurings” (TDR) and if so, are evaluated for impairment. A TDR is defined as a loan restructure where for legal or economic reasons related to a borrower's financial difficulties, the creditor grants one or more concessions to the borrower that it would not otherwise consider. Terms of loan agreements may be modified to fit the ability of the borrower to repay in respect of its current financial status and restructuring of loans may include the transfer of assets from the borrower to satisfy debt, a modification of loan terms, or a combination of the two. If a satisfactory restructure and payment arrangement cannot be reached, the loan may be referred to legal counsel for foreclosure.

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Securities (Details) (USD $) In Thousands, unless otherwise specified													3 Months Ended
	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2012 US Treasury [Member]	Dec. 31, 2011 US Treasury [Member]	Mar. 31, 2012 Government Sponsored enterprise obligations [Member]	Dec. 31, 2011 Government Sponsored enterprise obligations [Member]	Mar. 31, 2012 State and municipal obligations [Member]	Dec. 31, 2011 State and municipal obligations [Member]	Mar. 31, 2012 Corporate obligations [Member]	Dec. 31, 2011 Corporate obligations [Member]	Mar. 31, 2012 Equity Securities [Member]	Dec. 31, 2011 Equity Securities [Member]	Mar. 31, 2012 Investments Impairment Charge [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 105,642		$ 502	$ 502	$ 51,149	$ 55,766	$ 51,605	$ 53,531	$ 1,094	$ 1,093	$ 1,292	$ 1,295
Gross unrealized gains	2,086	2,408	0	0	267	377	1,627	1,917	2	2	190	112
Gross unrealized losses	(398)	(337)	0	0	(113)	(18)	(16)	(23)	(269)	(296)	0	0
Fair Value	107,330	114,258	502	502	51,303	56,125	53,216	55,425	827	799	1,482	1,407
Cumulative OTTI recognized in earnings													$ 360,000

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Loan Servicing Assets (Details) (USD $)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Loan Servicing Assets [Abstract]
Gross servicing fees	$ 346,000	$ 343,000
Servicing assets at amortized cost, Balance	2,489,000	2,222,000
Servicing assets at fair value, Balance	3,244,000	3,418,000
Servicing asset at amortized value, Origination	254,000	155,000
Servicing asset at amortized value, Amortization	(143,000)	(124,000)
Servicing assets at amortized cost, Balance	2,600,000	2,253,000
Servicing assets at fair value, Balance	$ 3,280,000	$ 3,465,000

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Acquisition

3 Months Ended

Mar. 31, 2012

Acquisition [Abstract]

Acquisition

(13) Acquisition

As more fully discussed in the 2011 Annual Report, in November 2011, the Company acquired a majority interest in WBI OBS Financial, LLC (WBI), a company formed to concurrently acquire OBS Holdings, Inc. (OBS). As of March 31, 2012, the Company had not completed its comprehensive analysis of the fair value of assets acquired and liabilities assumed. The Company expects to complete this analysis in 2012. There has been no change to the financial information presented in the 2011 Annual Report.